Global Markets:
- Asian Stock Markets : Nikkei up 1.11%, Shanghai Composite down 0.23%, Hang Seng up 0.48%, ASX up 0.62%
- Commodities : Gold at $1859.25 (+0.25%), Silver at $21.33 (+0.42%), Brent Oil at $85.20 (-0.73%), WTI Oil at $79.13 (-0.69%)
- Rates : US 10-year yield at 3.940, UK 10-year yield at 3.885, Germany 10-year yield at 2.661
News & Data:
- (NZD) ANZ Commodity Prices m/m 1.30% vs -0.90% previous
- (AUD) MI Inflation Gauge m/m 0.40% vs 0.90% previous
- (USD) ISM Services PMI 55.1 vs 54.5 expected
- (USD) Final Services PMI 50.6 vs 50.5 expected
- (CAD) Labor Productivity q/q -0.50% vs 0.20% expected
- (CAD) Building Permits m/m -4.00% vs 1.70% expected
- (EUR) PPI m/m -2.80% vs -0.30% expected
Markets Update:
Asia-Pacific equities traded with mixed results on Monday as investors continue to analyze China’s growth target set during its parliamentary sessions and await a week’s worth of economic data. Bond markets remain on edge in anticipation of an update on the US rate outlook from the world’s most influential central banker, and a jobs report that could influence whether the next hike will need to be substantial.
The technology-heavy bourses fared well, following a strong lead-in from Wall Street indexes. The Taiwan Weighted index surged by 1.2%, while South Korea’s KOSPI added 1%. The Nikkei 225 index in Japan also climbed by 1.2%, with markets speculating that the Bank of Japan will retain its ultra-loose policy in the short term. On the other hand, China’s Shanghai Shenzhen CSI 300 index declined by 0.6%, while the Shanghai Composite index shed 0.3% after government officials set a 5% economic growth target for 2023 over the weekend.
The 10-year Treasuries’ yields remained at 3.94% after buyers found the last week’s spike to 4.09% attractive enough to invest in. Oil prices dipped, potentially due to investor disappointment that China did not establish more ambitious growth targets.
Upcoming Events:
Monday, March 06, 2023
- 07:30 AM GMT – (CHF) CPI m/m
- 03:00 PM GMT – (CAD) Ivey PMI
Tuesday, March 07, 2023
- 03:30 AM GMT – (AUD) Cash Rate
- 03:30 AM GMT – (AUD) RBA Rate Statement
- 03:00 PM GMT – (USD) Fed Chair Powell Testifies
- 06:30 PM GMT – (CHF) SNB Chairman Jordan Speaks
- 09:55 PM GMT – (AUD) RBA Gov Lowe Speaks
Wednesday, March 08, 2023
- 10:00 AM GMT – (EUR) ECB President Lagarde Speaks
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 03:00 PM GMT – (CAD) BOC Rate Statement
- 03:00 PM GMT – (CAD) Overnight Rate
- 03:00 PM GMT – (USD) Fed Chair Powell Testifies
- 03:00 PM GMT – (USD) JOLTS Job Openings
- 06:01 PM GMT – (USD) 10-y Bond Auction
Thursday, March 09, 2023
- 01:30 PM GMT – (USD) Unemployment Claims
Friday, March 10, 2023
- Tentative – (JPY) Monetary Policy Statement
- Tentative – (JPY) BOJ Press Conference
- 07:00 AM GMT – (GBP) GDP m/m
- 01:30 PM GMT – (CAD) Employment Change
- 01:30 PM GMT – (CAD) Unemployment Rate
- 01:30 PM GMT – (USD) Average Hourly Earnings m/m
- 01:30 PM GMT – (USD) Non-Farm Employment Change
- 01:30 PM GMT – (USD) Unemployment Rate
