Global Markets:
- Asian Stock Markets : Nikkei up 0.26%, Shanghai Composite down 0.21%, Hang Seng up 0.07%, ASX up 0.56%
- Commodities: Gold at $1417.25 (-0.26%), Silver at $15.32 (-0.12%), Brent Oil at $63.25 (-0.89%), WTI Oil at $56.84 (-0.87%)
- Rates : US 10-year yield at 1.953, UK 10-year yield at 0.698, Germany 10-year yield at -0.384
News & Data:
- (AUD) Building Approvals m/m 0.70% vs 0.00% expected
- (AUD) Trade Balance 5.75B vs 5.25B expected
- (GBP) Services PMI 50.2 vs 51 expected
- (USD) ADP Non-Farm Employment Change 102K vs 140K expected
- (CAD) Trade Balance 0.8B vs -1.7B expected
- (USD) ISM Non-Manufacturing PMI 55.1 vs 56.1 expected
- (AUD) Retail Sales m/m 0.10% vs 0.20% expected
- S.- China trade officials to schedule face-to-face meetings soon: reports
- Dow and Nasdaq close at record highs amid expectations for the Fed to lower rates
Markets Update:
Asian stocks are mixed in early trading on Thursday, tracking solid gains on Wall Street as data pointed to slowing economic growth in the United States, bolstering the prospect of rate cuts by the Federal Reserve as soon as this month.
On Wall Street, which closed at midday on Wednesday for the eve of Independence Day, all three major stock indexes finished at record closing highs as expectations of Fed policy easing grew. The rally follows a slight easing of trade tensions between the U.S. and China after they agreed to refrain from new tariffs pending a new round of negotiations. That has relieved some pressure on markets, though the trade war still overshadows the global economic outlook.
Japan’s Nikkei and Australian benchmark were up 0.2% and 0.5%, respectively, although a U.S. public holiday kept activity somewhat subdued. Hong Kong’s Hang Seng edged 0.5% higher after slightly sinking as trade-war fears compete with prospect of future easy-money policies. Mainland Chinese shares, on the other hand, drifted into negative territory amid U.S.-China trade uncertainty and a Trump comment over alleged currency manipulation, with the Shanghai Composite down 0.2%.
Global sovereign bonds rallied overnight. The 10-year Treasury note yield plunged to 1.953%, a level last seen following Donald Trump’s election as president in November 2016. The dollar was little changed at 107.76 yen, losing steam as the fall this week in U.S. bond yields. In commodities, oil prices inched lower on Thursday after solid gains the day before, pressured by data showing a smaller-than-expected decline in U.S. crude stockpiles.
Gold prices were steady on Thursday after hitting a one-week high in the previous session, as gains in stock markets offset support from a weaker dollar and U.S. rate cut hopes.
Upcoming Events:
Friday, July 05, 2019
- 1:30pm GMT – (CAD) Employment Change
- 1:30pm GMT – (CAD) Unemployment Rate
- 1:30pm GMT – (USD) Average Hourly Earnings m/m
- 1:30pm GMT – (USD) Non-Farm Employment Change
- 1:30pm GMT – (USD) Unemployment Rate
- &more…
