Global Markets:
- Asian Stock Markets : Nikkei up 0.90%, Shanghai Composite up 0.37%, Hang Seng up 1.64%, ASX down 0.22%
- Commodities : Gold at $1978.45 (-0.16%), Silver at $23.90 (-0.67%), Brent Oil at $74.72 (-1.14%), WTI Oil at $70.83 (-1.20%)
- Rates : US 10-year yield at 3.678, UK 10-year yield at 4.046, Germany 10-year yield at 2.433
News & Data:
- (CAD) Core Retail Sales m/m -0.30% vs -0.80% expected
- (CAD) Retail Sales m/m -1.40% vs -1.30% expected
Markets Update:
Asian markets traded mixed as a risk of a debt default in Washington cast a shadow over markets, as the US Congress failed to reach a deal on raising the debt ceiling before the deadline. The US dollar weakened against most major currencies, while gold and crude oil prices rose on safe-haven demand.
The Asia-Pacific region also faced its own challenges, such as slower economic growth, declining consumer confidence, falling manufacturing output, high inflation, and heightened geopolitical tensions. Greater China, the region’s private equity powerhouse, suffered the biggest contraction in deal activity, while internet and technology sectors lost their appeal.
Investors turned instead to defensive sectors that offer steady cash flow and lower risk, such as advanced manufacturing, energy and natural resources, and critical infrastructure. Japan’s equity market was an exception, as it showed resilience amid global turmoil and benefited from its exposure to cyclical sectors.
The outlook for Asian equities remains uncertain, as the region braces for more volatility and potential shocks. Macroeconomic weakness is now the No. 1 concern keeping the region’s investors awake at night.
Upcoming Events:
Tuesday, May 23, 2023
- 07:15 am GMT – (EUR) French Flash Manufacturing PMI
- 07:15 am GMT – (EUR) French Flash Services PMI
- 07:30 am GMT – (EUR) German Flash Manufacturing PMI
- 07:30 am GMT – (EUR) German Flash Services PMI
- 08:00 am GMT – (EUR) Flash Manufacturing PMI
- 08:00 am GMT – (EUR) Flash Services PMI
- 08:30 am GMT – (GBP) Flash Manufacturing PMI
- 08:30 am GMT – (GBP) Flash Services PMI
- 01:45 pm GMT – (USD) Flash Manufacturing PMI
- 01:45 pm GMT – (USD) Flash Services PMI
- 02:00 pm GMT – (USD) New Home Sales
- 02:00 pm GMT – (USD) Richmond Manufacturing Index
- 10:45 pm GMT – (NZD) Retail Sales q/q
Wednesday, May 24, 2023
- 02:00 am GMT – (NZD) Official Cash Rate
- 02:00 am GMT – (NZD) RBNZ Monetary Policy Statement
- 02:00 am GMT – (NZD) RBNZ Rate Statement
- 03:00 am GMT – (NZD) RBNZ Press Conference
- 06:00 am GMT – (GBP) CPI y/y
- 08:00 am GMT – (EUR) German ifo Business Climate
- 09:30 am GMT – (GBP) BOE Gov Bailey Speaks
- 01:00 pm GMT – (GBP) BOE Gov Bailey Speaks
- 02:05 pm GMT – (USD) Treasury Sec Yellen Speaks
- 06:00 pm GMT – (USD) FOMC Meeting Minutes
Thursday, May 25, 2023
- 12:30 pm GMT – (USD) Prelim GDP q/q
- 12:30 pm GMT – (USD) Unemployment Claims
- 12:30 pm GMT – (USD) Prelim GDP Price Index q/q
- 02:00 pm GMT – (USD) Pending Home Sales m/m
- 11:30 pm GMT – (JPY) Tokyo Core CPI y/y
Friday, May 26, 2023
- 06:00 am GMT – (GBP) Retail Sales m/m
- 12:30 pm GMT – (USD) Core PCE Price Index m/m
- 12:30 pm GMT – (USD) Core Durable Goods Orders m/m
- 12:30 pm GMT – (USD) Durable Goods Orders m/m
- 02:00 pm GMT – (USD) Revised UoM Consumer Sentiment
