Global Markets:
- Asian stock markets: Nikkei up 1.18%, ASX down 0.08%
- Commodities: Gold at $1360.70 (+0.40%), Silver at $16.860 (+0.38%), WTI Oil at $61.69 (+0.57%), Brent Oil at $64.67 (+0.53%)
- Rates: US 10-year yield at 2.908, UK 10-year yield at 1.646, German 10-year yield at 0.767
News & Data:
- (NZD) Business NZ Manufacturing Index 55.6 vs 51.1 previous
- (USD) Industrial Production m/m -0.10% vs 0.20% expected
- (USD) Capacity Utilization Rate 77.50% vs 78.00% expected
- (USD) Unemployment Claims 230K vs 229K expected
- (USD) Philly Fed Manufacturing Index 25.8 vs 21.5 expected
- (USD) Empire State Manufacturing Index 13.1 vs 17.7 expected
- (USD) Core PPI m/m 0.40% vs 0.20% expected
- (USD) PPI m/m 0.40% vs 0.40% expected
- (CAD) ADP Non-Farm Employment Change 10.7K vs -13.5K previous
- Yen strengthens past 106 per dollar; first time since Nov. 2016
- BoJ Gov Kuroda: Japan's Economy Expanding Moderately But Price Growth Remains Low
Markets Update:
China, Hong Kong and Korean markets are shut for trading today on account of the Lunar New Year holiday. The decreased trading volumes can be seen to affect liquidity in the region. However, the Nikkei was seen to be following on the cues from Wall Street, which posted overnight gains. Interestingly, these equity gains come alongside another yield backup. Latest earnings put a damper on the ASX, which is off highs.
Japanese Prime Minister Shinzo Abe's administration reappointed Bank of Japan Governor Haruhiko Kuroda for another five-year term in an indication that the country's stimulus policy will remain unchanged. JGBs barely reacted to the news – as it was largely expected, although earlier in the week there were unconfirmed rumors that Abe was having second thoughts.
The Reserve Bank of Australia plans to leave interest rates at their current record lows for a while, Governor Philip Lowe said on Friday, while also emphasizing the importance of wage growth in shaping rate outlook.
The 10Year US Treasury, continues to trade above 2.90, following the faster than expected rise in inflation, leading to speculation of faster rate hikes by the Fed. This is also causing USD to decline against the majors, and driving the rally in Gold. Crude continues to extend gains, while bitcoin traded above $10000
Upcoming Events:
- 09:30 AM GMT – (GBP) Retail Sales m/m
- 01:30 PM GMT – (CAD) Foreign Securities Purchases
- 01:30 PM GMT – (CAD) Manufacturing Sales m/m
- 01:30 PM GMT – (USD) Building Permits
- 01:30 PM GMT – (USD) Housing Starts
- 01:30 PM GMT – (USD) Import Prices m/m
- 03:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
