Global Markets:
- Asian Stock Markets : Nikkei down 0.44%, Shanghai Composite up 0.01%, Hang Seng up 0.12%, ASX up 0.48%
- Commodities : Gold at $1316.90 (-0.07%), Silver at $16.42 (-0.01%), WTI Oil at $65.16 (+0.06%), Brent Oil at $61.26 (+0.11%)
- Rates : US 10-year yield at 2.823, UK 10-year yield at 1.434, Germany 10-year yield at 0.574
News & Data:
- (NZD) Business NZ Manufacturing Index 53.4 vs 54.4 previous
- (USD) Unemployment Claims 226K vs 227K expected
- (USD) Philly Fed Manufacturing Index 22.3 vs 23.1 expected
- (USD) Empire State Manufacturing Index 22.5 vs 14.9 expected
- (CHF) Libor Rate -0.75% vs -0.75% expected
- (CHF) PPI m/m 0.30% vs 0.20% expected
- Foreigners Bailing on BOJ Bets Narrow Spread on Yen Swap Rates
- China foreign investment sees growth momentum
Markets Update:
Asian markets traded mostly in the negative territory today, as the Washington drama ensues. Reports of more turmoil in the White House have led to investors questioning the stability of the administration and its policies – however, the White House has denied such reports.
Not helping is the fact that investors are cautious, given the Fed meeting next week, where all eyes are on the commentary, having fully priced in a rate hike for next week. Trade sentiment continues to be soured, given the hawkish rhetoric from the White House on China.
Given the statements from Washington, Chinese equities have been surprisingly quite immune, driven more by global cues. However, Yuan has been weakening, along with other trade-centric currencies like the Aussie and Kiwi dollar. Japan continues to focus on the land-sale scandal involving PM Abe, putting the future of Abenomics in question.
Commodities were mixed, with the risk off sentiment helping gold, but the stronger dollar hindering its gains. Oil was flat today, after a volatile session yesterday, with IEA saying that while demand is set to increase this year, supply is likely to increase at a faster pace.
Upcoming Events:
- 10:00 AM GMT – (EUR) Final CPI y/y
- 12:30 PM GMT – (CAD) Foreign Securities Purchases
- 12:30 PM GMT – (CAD) Manufacturing Sales m/m
- 12:30 PM GMT – (USD) Building Permits
- 12:30 PM GMT – (USD) Housing Starts
- 01:15 PM GMT – (USD) Capacity Utilization Rate
- 01:15 PM GMT – (USD) Industrial Production m/m
- 02:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
