Global Markets:
- Asian Stock Markets : Nikkei up 0.15%, Shanghai Composite down 0.22%, Hang Seng up 0.30%, ASX down 0.24%
- Commodities : Gold at $1326.30 (+0.05%), Silver at $16.56 (+0.11%), WTI Oil at $64.89 (0.00%), Brent Oil at $61.03 (+0.11%)
- Rates : US 10-year yield at 2.812, UK 10-year yield at 1.426, Germany 10-year yield at 0.591
News & Data:
- (NZD) GDP q/q 0.60% vs 0.80% expected
- (USD) Crude Oil Inventories 5.0M vs 2.2M expected
- (USD) Core PPI m/m 0.20% vs 0.20% expected
- (USD) Retail Sales m/m -0.10% vs 0.30% expected
- (USD) PPI m/m 0.20% vs 0.10% expected
- (USD) Core Retail Sales m/m 0.20% vs 0.40% expected
- BoJ Gov Kuroda: Japan Has Been Implementing Strong Quantitative Easing -Japan Is Basically At Full Employment
- Bloodbath for cryptocurrencies as Bitcoin sheds 10%, now down 40% year-to-date
Markets Update:
Asian markets traded flat today, while bonds advanced, following another lacklustre session on the Wall Street. Risk appetite has been curbed by the trade tensions prevailing in the market. While a rate hike next week is completely priced in, markets are also cautious about the Fed’s updated views on the rate outlook.
While Nikkei opened in the red, it has pared its losses since – although there continues to be political uncertainty in the country, especially over Abe’s future. Banks continue to weigh on ASX, as the regulator’s fraud inquiry into the sector continues. Hang Seng too opened in the red following suggestions from National Economic advisor Larry Kudlow that the US might impose further tariffs on China, however, it has found its way back up.
Bonds advanced, bringing down Treasury yields. The US 10-year Treasury yield dipped to 2.806 percent and headed for its fourth day of declines amid rising diplomatic tension between Britain and Russia, soft U.S. retail sales data and concerns over Washington’s political and trade issues.
The dollar index traded largely flat, although the greenback is dogged by trade tensions and political turmoil. Gold and Crude Oil both gained, the former due to the decreased risk appetite, and the latter after a larger than expected fall in US refined inventories.
Upcoming Events:
- 08:15 AM GMT – (CHF) PPI m/m
- 08:30 AM GMT – (CHF) Libor Rate
- 08:30 AM GMT – (CHF) SNB Monetary Policy Assessment
- 12:30 PM GMT – (USD) Empire State Manufacturing Index
- 12:30 PM GMT – (USD) Import Prices m/m
- 12:30 PM GMT – (USD) Philly Fed Manufacturing Index
- 12:30 PM GMT – (USD) Unemployment Claims
- 09:30 PM GMT – (NZD) Business NZ Manufacturing Index
- 10:45 PM GMT – (AUD) RBA Assist Gov Debelle Speaks
