Global Markets:
- Asian Stock Markets : Nikkei up 0.67%, Shanghai Composite down 0.76%, Hang Seng down 2.02%, ASX down 0.25%
- Commodities : Gold at $1886.70 (+0.54%), Silver at $22.47 (+0.29%), Brent Oil at $79.99 (+0.06%), WTI Oil at $73.28 (-0.15%)
- Rates : US 10-year yield at 3.573, UK 10-year yield at 3.176, Germany 10-year yield at 2.245
News & Data:
- (USD) ISM Services PMI 55.2 vs 50.5 expected
- (USD) Unemployment Rate 3.40% vs 3.60% expected
- (USD) Non-Farm Employment Change 517K vs 193K expected
- (USD) Average Hourly Earnings m/m 0.30% vs 0.30% expected
Markets Update:
Asian stocks fell broadly on Monday as robust U.S. jobs data released on Friday fanned fears of more interest rate hikes to slow economic activity and cool inflation. According to the Federal Reserve, a strong labor market would lead to excessive wage growth which, in turn, would lead to inflation pressures.
Chinese and Hong Kong stocks slipped into the red after the Biden administration decided to postpone Secretary of State Antony Blinken’s upcoming trip to China in response to the Pentagon’s discovery of an alleged Chinese spy balloon, that was later shot down. Japanese stocks were the sole outliers for the day, with the Nikkei 225 index rising 0.7% after a report pegged Bank of Japan Deputy Governor Masayoshi Amamiya as next in line to lead the central bank. Australian markets fell modestly as investors awaited the RBA’s policy meeting on Tuesday for direction. New Zealand markets were closed for Waitangi Day holiday.
The dollar rose to a near one-month high against a basket of currencies, with the dollar index and dollar index futures up 0.1% each. Data on Friday showed that U.S. nonfarm payrolls unexpectedly surged in January, pointing to a strong labor market despite increased economic headwinds.
Upcoming Events:
Monday, February 06, 2023
- 03:00 PM GMT – (CAD) Ivey PMI
Tuesday, February 07, 2023
- 03:30 AM GMT – (AUD) Cash Rate
- 03:30 AM GMT – (AUD) RBA Rate Statement
- 05:00 PM GMT – (USD) Fed Chair Powell Speaks
- 05:30 PM GMT – (CAD) BOC Gov Macklem Speaks
Wednesday, February 08, 2023
- 02:15 PM GMT – (USD) FOMC Member Williams Speaks
- 06:01 PM GMT – (USD) 10-y Bond Auction
- 06:45 PM GMT – (USD) FOMC Member Waller Speaks
Thursday, February 09, 2023
- 09:45 AM GMT – (GBP) Monetary Policy Report Hearings
- 10:00 AM GMT – (EUR) EU Economic Forecasts
- 01:30 PM GMT – (USD) Unemployment Claims
Friday, February 10, 2023
- 12:30 AM GMT – (AUD) RBA Monetary Policy Statement
- 07:00 AM GMT – (GBP) GDP m/m
- 07:00 AM GMT – (GBP) Prelim GDP q/q
- 01:30 PM GMT – (CAD) Employment Change
- 01:30 PM GMT – (CAD) Unemployment Rate
- 03:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
- 03:00 PM GMT – (USD) Prelim UoM Inflation Expectations
- 05:30 PM GMT – (USD) FOMC Member Waller Speaks
