Global Markets:
- Asian Stock Markets : Nikkei up 0.33%, Shanghai Composite down 0.44%, Hang Seng down 1.76%, ASX up 0.10%
- Commodities : Gold at $1987.85 (-0.69%), Silver at $23.19 (-0.65%), Brent Oil at $74.86 (+0.36%), WTI Oil at $69.48 (+0.32%)
- Rates : US 10-year yield at 3.421, UK 10-year yield at 3.375, Germany 10-year yield at 2.185
News & Data:
- (EUR) German ifo Business Climate 93.3 vs 91 expected
- (USD) Flash Services PMI 53.8 vs 50.3 expected
- (USD) Flash Manufacturing PMI 49.3 vs 47 expected
- (USD) Durable Goods Orders m/m -1.00% vs 0.40% expected
- (USD) Core Durable Goods Orders m/m 0.00% vs 0.20% expected
- (CAD) Retail Sales m/m 1.40% vs 0.70% expected
- (CAD) Core Retail Sales m/m 0.90% vs 0.60% expected
- (GBP) Flash Services PMI 52.8 vs 53.1 expected
- (GBP) Flash Manufacturing PMI 48 vs 49.8 expected
- (EUR) Flash Services PMI 55.6 vs 52.6 expected
- (EUR) Flash Manufacturing PMI 47.1 vs 48.9 expected
- (EUR) German Flash Services PMI 53.9 vs 51 expected
- (EUR) German Flash Manufacturing PMI 44.4 vs 47.1 expected
- (EUR) French Flash Services PMI 55.5 vs 52.4 expected
- (EUR) French Flash Manufacturing PMI 47.7 vs 48.1 expected
- (GBP) Retail Sales m/m 1.20% vs 0.20% expected
Markets Update:
Asian markets ended mixed on Monday as investors weighed the impact of the banking troubles in the U.S. and Europe. Deutsche Bank’s U.S.-listed shares plunged on Friday after the German lender’s credit default swaps spiked, sparking fears over the health of the European banking industry. The ECB President Christine Lagarde tried to calm the nerves by saying euro zone banks are resilient and have strong capital and liquidity positions. JPMorgan also defended Deutsche Bank, saying investors should focus on its “solid” fundamentals.
The banking sector woes also affected some Asian markets, especially Hong Kong, where the Hang Seng Index fell 0.26% to 19,915.68. The financial subindex was among the worst performers, dropping 1.33%. Shares of HSBC and Standard Chartered declined 1.8% and 2.1%, respectively. In mainland China, however, markets shrugged off the banking jitters and rose on Monday. The Shanghai Composite Index gained 0.8%, while the CSI 300 Index advanced 1%. Information technology stocks led the gains, rising 2.5% as a sector. China is likely to loosen its zero-Covid policy in 2023 and economic activity will recover, which bodes well for the stock market, according to Jun Bei Liu, portfolio manager at Tribeca Investment Partners.
Japan’s Nikkei 225 Index also closed higher, adding 0.2%, as investors awaited the Bank of Japan’s policy decision on Tuesday. The central bank is expected to keep its monetary policy unchanged but may tweak its guidance on bond yields and asset purchases. The Japanese yen strengthened against the U.S. dollar, trading at 109.80 per dollar. In Australia, the S&P/ASX 200 Index fell 1.1%, dragged down by energy and materials stocks.
Oil prices slipped on Monday as rising Covid-19 cases in Europe and Asia dampened the demand outlook. Gold prices also edged lower on Monday as the U.S. dollar firmed amid the risk-off sentiment. The U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.1% to 92.67 on Monday, extending its gains from last week when it hit a four-month high.
Upcoming Events:
Monday, March 27, 2023
- 08:00 AM GMT – (EUR) German ifo Business Climate
- 05:00 PM GMT – (GBP) BOE Gov Bailey Speaks
Tuesday, March 28, 2023
- 08:45 AM GMT – (GBP) BOE Gov Bailey Speaks
- 02:00 PM GMT – (USD) CB Consumer Confidence
- 02:00 PM GMT – (USD) Richmond Manufacturing Index
Wednesday, March 29, 2023
- 12:30 AM GMT – (AUD) CPI y/y
- 02:00 PM GMT – (USD) Pending Home Sales m/m
Thursday, March 30, 2023
- All Day – (EUR) German Prelim CPI m/m
- 07:00 AM GMT – (EUR) Spanish Flash CPI y/y
- 12:30 PM GMT – (USD) Final GDP q/q
- 12:30 PM GMT – (USD) Unemployment Claims
- 12:30 PM GMT – (USD) Final GDP Price Index q/q
- 04:00 PM GMT – (CHF) Gov Board Member Maechler Speaks
- 07:45 PM GMT – (USD) Treasury Sec Yellen Speaks
- 11:30 PM GMT – (JPY) Tokyo Core CPI y/y
Friday, March 31, 2023
- 01:30 AM GMT – (CNY) Manufacturing PMI
- 01:30 AM GMT – (CNY) Non-Manufacturing PMI
- Tentative – (EUR) ECB President Lagarde Speaks
- 09:00 AM GMT – (EUR) CPI Flash Estimate y/y
- 09:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
- 12:30 PM GMT – (CAD) GDP m/m
- 12:30 PM GMT – (USD) Core PCE Price Index m/m
- 01:45 PM GMT – (USD) Chicago PMI
- 02:00 PM GMT – (USD) Revised UoM Consumer Sentiment
