Global Markets:
- Asian Stock Markets : Nikkei up 0.79%, Shanghai Composite down 0.02%, Hang Seng dowm 0.28%, ASX up 0.54%
- Commodities : Gold at $1993.05 (-0.79%), Silver at $24.66 (-1.23%), Brent Oil at $84.92 (-0.63%), WTI Oil at $81.30 (-0.65%)
- Rates : US 10-year yield at 3.972, UK 10-year yield at 4.366, Germany 10-year yield at 2.469
News & Data:
- (EUR) CPI Flash Estimate y/y 5.3% vs 5.3% expected
- (EUR) Core CPI Flash Estimate y/y 5.5% vs 5.4% expected
- (EUR) Prelim Flash GDP q/q 0.3% vs 0.2% expected
Markets Update:
Asia-Pacific markets saw a rise on Monday despite China’s factory activity remaining in contraction territory for the fourth consecutive month. The official manufacturing Purchasing Managers’ Index (PMI) for July came in at 49.3, slightly higher than June’s figure of 49.0, according to the national bureau of statistics. However, the PMI for non-manufacturing activity showed a slower rate of expansion, coming in at 51.5, compared to June’s 53.2.
In Hong Kong, the Hang Seng index rose 0.83% in its final hour of trade, while the Hang Seng Tech index witnessed a larger climb of 1.87%. Notably, this marked the first time in over a month that the HSI breached the 20,000 mark. Mainland Chinese markets also experienced gains, with the Shanghai Composite rising 0.46% to close at 3,291.04 and the Shenzhen Component ending 0.75% higher at 11,183.91. Meanwhile, Japan’s Nikkei 225 gained 1.26% to close at 33,172, and the broader Topix saw a larger rise of 1.39%, reaching a new 33-year record at 2,322.56. However, Japan’s industrial output for June fell below economists’ expectations, registering a 2% growth month on month, compared to the anticipated 2.4%.
As investors in Australia prepared for the Reserve Bank of Australia’s rate decision on Tuesday, the S&P/ASX 200 climbed marginally, closing at 7,410.4. Economists polled by Reuters were expecting a 25 basis points hike in its benchmark policy rate to 4.35%.
In commodities markets, prices showed mixed movements. Gold dipped by 0.79% to reach $1993.05, while silver experienced a decline of 1.23%, settling at $24.66. Brent Oil also saw a slight decrease of 0.63%, ending at $84.92, and WTI Oil dropped by 0.65% to $81.30.
Upcoming Events:
- 2:00 PM GMT – USD ISM Manufacturing PMI
- 2:00 PM GMT – USD JOLTS Job Openings
- 2:00 PM GMT – USD ISM Manufacturing Prices
