Global Markets:
- Asian Stock Markets : Nikkei down 0.44%, Shanghai Composite up 1.38%, Hang Seng down 0.80%, ASX down 0.38%
- Commodities : Gold at $1532.85 (+0.23%), Silver at $18.43 (+0.50%), Brent Oil at $59.05 (-0.34%), WTI Oil at $55.09 (-0.02%)
- Rates : US 10-year yield at 1.499, UK 10-year yield at 0.474, Germany 10-year yield at -0.698
News & Data:
- (CNY) Caixin Manufacturing PMI 50.4 vs 49.8 expected
- (AUD) Company Operating Profits q/q 4.50% vs 2.10% expected
- (CNY) Non-Manufacturing PMI 53.8 vs 53.6 expected
- (CNY) Manufacturing PMI 49.5 vs 49.7 expected
- (USD) Chicago PMI 50.4 vs 48.1 expected
- (USD) Core PCE Price Index m/m 0.20% vs 0.30% expected
- (USD) Personal Spending m/m 0.60% vs 0.50% expected
- (CAD) RMPI m/m 1.20% vs 1.60% expected
- (CAD) GDP m/m 0.20% vs 0.10% expected
- (EUR) CPI Flash Estimate y/y 1.00% vs 1.00% expected
- UK’s Labour plans to make companies give shares to workers
- China sets Yuan midpoint at new 11.5-year low after new round of tariffs
CFTC Positioning Data:
- EUR short 39K vs 38K short last week. Shorts increased by 1K
- GBP short 89K vs 92K short last week. Shorts trimmed by 3K
- JPY long 34K vs 31K short last week. Longs increased by 3K
- CHF short 4k vs 11k short last week. Shorts trimmed by 7K
- AUD short 61k vs 63k short last week. Shorts trimmed by 2K
- NZD short 26K vs 18K short last week. Shorts increased by 8K
- CAD long 11K vs 13K long last week. Longs trimmed by 2K.
Markets Update:
Asian stock markets are mostly lower on Monday amid worries about the tit-for-tat trade war between the world’s two largest economies and its impact on global economic growth.
A new round of tariffs by the U.S. and China took effect over the weekend. U.S. tariffs on about $112 billion worth of Chinese imports went into effect on Sunday, while China started to impose retaliatory tariffs on some of the $75 billion worth of U.S. goods it has targeted.
In a surprise development, China’s factory activity unexpectedly expanded in August as output edged up, a private sector purchasing managers’ index (PM) showed on Monday, but orders remained weak and business confidence faltered. Mainland Chinese shares jumped by the afternoon, as the Shanghai composite added 1.4% and Shenzhen component was up 2.2%.
Over in Hong Kong, however, the Hang Seng index slipped 0.8%. Tensions ramped up in the beleaguered city, with another round of fresh protests that occurred over the weekend. Export-reliant South Korea, Japan and Taiwan also saw factory activity shrink, underscoring the growing pain from the tit-for-tat tariff war between the world’s two-largest economies. Elsewhere, the Nikkei 225 as well as the Topix shed 0.4%. Australia’s S&P/ASX 200 traded 0.4% lower.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 98.817 after rising from levels below 97.8 last week. Oil prices were mixed in the afternoon of Asian trading hours, with international benchmark Brent crude futures down while WTI was largely flat.
Upcoming Events:
Monday, September 02, 2019
- 08:30 AM GMT – (GBP) Manufacturing PMI
Tuesday, September 03, 2019
- 01:30 AM GMT – (AUD) Retail Sales m/m
- 01:30 AM GMT – (AUD) Current Account
- 04:30 AM GMT – (AUD) Cash Rate
- 04:30 AM GMT – (AUD) RBA Rate Statement
- 02:00 PM GMT – (USD) ISM Manufacturing PMI
- 09:00 PM GMT – (USD) FOMC Member Rosengren Speaks
Wednesday, September 04, 2019
- 01:30 AM GMT – (AUD) GDP q/q
- 01:45 AM GMT – (CNY) Caixin Services PMI
- 08:30 AM GMT – (GBP) Services PMI
- 12:30 PM GMT – (CAD) Trade Balance
- 01:15 PM GMT – (GBP) Inflation Report Hearings
- 01:25 PM GMT – (USD) FOMC Member Williams Speaks
- 02:00 PM GMT – (CAD) BOC Rate Statement
- 02:00 PM GMT – (CAD) Overnight Rate
- 04:30 PM GMT – (USD) FOMC Member Bullard Speaks
- 07:15 PM GMT – (USD) FOMC Member Evans Speaks
Thursday, September 05, 2019
- 01:30 AM GMT – (AUD) Trade Balance
- 12:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 02:00 PM GMT – (USD) ISM Non-Manufacturing PMI
- 02:30 PM GMT – (GBP) MPC Member Tenreyro Speaks
- 03:00 PM GMT – (USD) Crude Oil Inventories
- 03:45 PM GMT – (CAD) Gov Council Member Schembri Speaks
- 04:00 PM GMT – (CHF) SNB Chairman Jordan Speaks
Friday, September 06, 2019
- 12:30 PM GMT – (CAD) Employment Change
- 12:30 PM GMT – (CAD) Unemployment Rate
- 12:30 PM GMT – (USD) Average Hourly Earnings m/m
- 12:30 PM GMT – (USD) Non-Farm Employment Change
- 12:30 PM GMT – (USD) Unemployment Rate
- 04:30 PM GMT – (USD) Fed Chair Powell Speaks
- &More…
