Global Markets:
- Asian stock markets: Nikkei up 0.62%, Shanghai Composite up 0.63%, Hang Seng up 1.11%, ASX up 0.82%
- Commodities: Gold at $1328.7 (-.30%), Silver at $16.540 (-0.28%), WTI Oil at $62.78 (+0.02%), Brent Oil at $66.35 (-0.06%)
- Rates: US 10-year yield at 2.928, UK 10-year yield at 1.543, German 10-year yield at 0.707
News & Data:
- (USD) Crude Oil Inventories -1.6M vs 2.2M expected
- (USD) Unemployment Claims 222K vs 230K expected
- (CAD) Retail Sales m/m -0.80% vs 0.00% expected
- (CAD) Core Retail Sales m/m -1.80% vs 0.10% expected
- (GBP) Prelim Business Investment q/q 0.00% vs 0.50% expected
- (GBP) Second Estimate GDP q/q 0.40% vs 0.50% expected
- (EUR) German Ifo Business Climate 115.4 vs 117.1 expected
- Japan blocking access to auto market with nontariff trade barriers, Trump says in report
Markets Update:
Asian markets traded higher today in a relatively quiet sessions, to end the week on a positive, after the mid-week pullback. The Dow and S&P also reversed some of its losses yesterday, as comments from a Fed official eased concerns of sped up rate hikes, and consequently of a fourth rate hike this year.
Chinese markets continued to gain from yesterday. Banks and Property Developers continue to drive up the Hang Seng. Nikkei off lows – Japan’s CPI was in focus as the data showed inflation rose 0.9% in January from a year earlier, compared with a median market forecast of 0.8%.
ASX was slightly in the green, supported by the materials sector. Bigger-than-expected rise in New Zealand retail sales failed to provide any support for the kiwi.
Bond yields mixed after this week’s backup. 10Y Treasury yield holding around 2.92%. In China, money market rates fell after PBoC followed up with another large- net cash injection via OMOs. JGBs are marginally stronger with front-end rates falling after BoJ focused bond buying operations on shorter-term securities.
Commodities mixed, with metals off overnight highs amid a bounce in the dollar.
Upcoming Events:
- 10:00 AM GMT – (EUR) Final CPI y/y
- 12:00 PM GMT – (GBP) MPC Member Ramsden Speaks
- 01:30 PM GMT – (CAD) CPI m/m
- 01:30 PM GMT – (CAD) Common CPI y/y
- 01:30 PM GMT – (CAD) Median CPI y/y
- 01:30 PM GMT – (CAD) Trimmed CPI y/y
- 03:15 PM GMT – (USD) FOMC Member Dudley Speaks
- 06:30 PM GMT – (USD) FOMC Member Mester Speaks
- 08:40 PM GMT – (USD) FOMC Member Williams Speaks
- &more…
