Global Markets:
- Asian Stock Markets : Nikkei down 0.13%, Shanghai Composite down 0.64%, Hang Seng down 0.74%, ASX down 0.19%
- Commodities : Gold at $1990.15 (-0.29%), Silver at $23.23 (-0.10%), Brent Oil at $76.13 (+0.29%), WTI Oil at $70.22 (+0.37%)
- Rates : US 10-year yield at 3.406, UK 10-year yield at 3.391, Germany 10-year yield at 2.151
News & Data:
- (GBP) Retail Sales m/m 1.20% vs 0.20% expected
- (JPY) National Core CPI y/y 3.10% vs 3.10% expected
- (USD) New Home Sales 640K vs 650K expected
- (USD) Unemployment Claims 191K vs 198K expected
- (GBP) Official Bank Rate 4.25% vs 4.25% expected
- (GBP) MPC Official Bank Rate Votes 7-0-2 vs 7-0-2 expected
- (CHF) SNB Policy Rate 1.50% vs 1.50% expected
Markets Update:
Asian shares were lower on Friday as lingering banking stability concerns gripped Wall Street, while bonds bet the recent slew of rate hikes by central banks will be among the last of the cycle, allowing for policy relief later in the year. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.6% on Friday, erasing some of the recent gains to be up 1.7% for the week. Japan’s Nikkei also slid 0.1%. China’s blue-chip index and Hong Kong’s Hang Seng both lost 0.7%, with sentiment weighed by persisting geopolitical tensions between the U.S. and China.
Treasury Secretary Janet Yellen said on Thursday that she was prepared to take further action to ensure bank deposits are safe, a day after saying that blanket insurance was not on the agenda, prompting a renewed sell-off in banking stocks.
Markets have bet on a recession and incoming rate cuts from major central banks, including the Federal Reserve, which raised interest rates for a fifth time this year on Wednesday. The U.S. dollar index fell to a seven-week low against a basket of currencies as investors priced in more dovish policy ahead.
In commodities, crude oil prices edged lower as demand worries outweighed supply disruptions from Libya and Kazakhstan. Gold prices rose to their highest level since November as lower bond yields and a weaker dollar boosted its appeal as an alternative asset.
Upcoming Events:
- 08:15 AM GMT – (EUR) French Flash Services PMI
- 08:15 AM GMT – (EUR) French Flash Manufacturing PMI
- 08:30 AM GMT – (EUR) German Flash Manufacturing PMI
- 08:30 AM GMT – (EUR) German Flash Services PMI
- 09:00 AM GMT – (EUR) Flash Manufacturing PMI
- 09:00 AM GMT – (EUR) Flash Services PMI
- 09:30 AM GMT – (GBP) Flash Manufacturing PMI
- 09:30 AM GMT – (GBP) Flash Services PMI
- 12:30 PM GMT – (CAD) Core Retail Sales m/m
- 12:30 PM GMT – (CAD) Retail Sales m/m
- 12:30 PM GMT – (USD) Core Durable Goods Orders m/m
- 12:30 PM GMT – (USD) Durable Goods Orders m/m
- 01:45 PM GMT – (USD) Flash Manufacturing PMI
- 01:45 PM GMT – (USD) Flash Services PMI
