Global Markets:
- Asian Stock Markets : Nikkei down 1.52%, Shanghai Composite down 1.39%, Hang Seng down 1.61%, ASX down 0.52%
- Commodities : Gold at $1299.70 (+0.05%), Silver at $16.39 (+0.10%), Brent Oil at $75.22 (-0.36%), WTI Oil at $66.61 (-0.18%)
- Rates : US 10-year yield at 2.810, UK 10-year yield at 1.190, Germany 10-year yield at 0.263
News & Data:
- (AUD) Building Approvals m/m -5.00% vs -2.90% expected
- (USD) CB Consumer Confidence 128 vs 128.2 expected
- (EUR) M3 Money Supply y/y 3.90% vs 3.90% expected
- China slams US call to press ahead with company restrictions
- Hong Kong stocks plunge below 30,000 as Italy crisis rattles nerves
Markets Update:
Asian markets are in the red today, as markets continue a sell-off aggravated by Italian political woes. Investors are worried about the impact of the happenings on the long-term health of the Euro and the stability of the Euro zone.
The euro is at a 10-month low, thereby pushing up Italian borrowing costs, as investors flocked to safe-haven US treasuries and risk-off Japanese yen.
Reports of renewed Sino-US trade tensions did not help the markets, pushing them to even lower levels. Nikkei is lower, with the yen strengthening.
Exporters are leading the rout; however, financials are not far behind. Australian markets are also lower, with financials losing the most.
Oil stocks are lower as oil fell for the fifth straight session overnight. Oil struggled under pressure from expectations that Saudi Arabia and Russia would pump more oil to counter potential supply shortfalls from Venezuela and Iran, even as U.S. output has surged in recent years.
Upcoming Events:
- 07:00 AM GMT – (EUR) German Retail Sales m/m
- All Day GMT – (EUR) German Prelim CPI m/m
- 08:00 AM GMT – (CHF) KOF Economic Barometer
- 08:00 AM GMT – (EUR) Spanish Flash CPI y/y
- 09:00 AM GMT – (CHF) Credit Suisse Economic Expectations
- Tentative – (EUR) Italian 10-y Bond Auction
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 01:30 PM GMT – (CAD) Current Account
- 01:30 PM GMT – (CAD) RMPI m/m
- 01:30 PM GMT – (USD) Prelim GDP q/q
- 03:00 PM GMT – (CAD) BOC Rate Statement
- 03:00 PM GMT – (CAD) Overnight Rate
- 03:45 PM GMT – (CHF) SNB Chairman Jordan Speaks
