Global Markets:
- Asian Stock Markets : Nikkei down 2.01%, Shanghai Composite down 0.92%, Hang Seng down 0.48%, ASX down 2.21%
- Commodities: Gold at $1509.10 (+0.08%), Silver at $17.77 (+0.48%), Brent Oil at $57.47 (-0.38%), WTI Oil at $52.56 (-0.15%)
- Rates : US 10-year yield at 1.575, UK 10-year yield at 0.493, Germany 10-year yield at -0.568
News & Data:
- (AUD) Trade Balance 5.93B vs 6.00B expected
- (NZD) ANZ Commodity Prices m/m 0.00% vs 0.30% previous
- (AUD) AIG Services Index 51.5 vs 51.4 previous
- (USD) Crude Oil Inventories 3.1M vs 2.0M expected
- (USD) ADP Non-Farm Employment Change 135K vs 140K expected
- (GBP) Construction PMI 43.3 vs 45 expected
- (EUR) Spanish Unemployment Change 13.9K vs 37.6K expected
- (CHF) CPI m/m -0.10% vs 0.10% expected
- (JPY) Consumer Confidence 35.6 vs 38.2 expected
- US-EU Trade War Escalation Hits Risk Sentiment
- EU ready to bypass Johnson to grant Brexit extension
Markets Update:
Asian stocks skidded to a one-month low on Thursday after the United States opened a new front in its trade dispute with Europe by imposing tariffs, adding to already-growing market fears about global growth.
U.S. stock futures were up 0.25%, but this did little to bolster sentiment after shares on Wall Street suffered their sharpest one-day decline in nearly six weeks on Wednesday, when the three major New York share indexes all lost more than 1.5%.Bets on a rate cut could rise further if U.S. non-farm payrolls due on Friday show weakness in the labor market.
Japan’s Nikkei fell 2%, on course for its biggest daily decline in six months. Australian shares slumped 2.21% to a five-week low. Hong Kong shares fell 0.48% as anti-government demonstrators clashed with police into the early hours of Thursday, venting their anger over a policeman’s shooting and wounding of a teenager. Mainland Chinese shares are also trading down by 0.92%.
Yields on two-year U.S. Treasury yields fell as weakening data on manufacturing and the jobs market suggested the trade war with China has damaged the U.S. economy. The two-year yield fell to 1.4680%, approaching a two-year low of 1.4280%, after a weak U.S. private sector jobs report depressed boosted expectations that the Federal Reserve will cut interest rates this month. Spot gold, a safe-haven asset that investors often buy during time of heightened risk, rose 0.08% to $1,509.10 per ounce, but in the currency market the safe-haven yen and Swiss franc were little changed versus the dollar.
Oil futures extended their decline in Asia as a bigger-than-expected increase in U.S. crude inventories and growing evidence of slowing economic growth point to lower energy demand. Brent crude fell 0.37% $57.47 per barrel. In addition to a slowing global economy, energy traders are worried about an oversupplied market and the chance of geopolitical friction in the Middle East.
Upcoming Events:
- 8:00am GMT – (EUR) Final Services PMI
- 8:30am GMT – (GBP) Services PMI
- 9:00am GMT – (EUR) PPI m/m
- 9:00am GMT – (EUR) Retail Sales m/m
- Tentative – (EUR) French 10-y Bond Auction
- 11:30am GMT – (USD) Challenger Job Cuts y/y
- 12:30pm GMT – (USD) FOMC Member Quarles Speaks
- 12:30pm GMT – (USD) Unemployment Claims
- 1:45pm GMT – (USD) Final Services PMI
- 2:00pm GMT – (GBP) MPC Member Tenreyro Speaks
- 2:00pm GMT – (USD) ISM Non-Manufacturing PMI
- 2:00pm GMT – (USD) Factory Orders m/m
- 2:30pm GMT – (USD) Natural Gas Storage
- 10:35pm GMT – (USD) FOMC Member Clarida Speaks
