Tuesday 12th November: Asian markets look for direction

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.81%, Shanghai Composite down 0.08%, Hang Seng up 0.31%, ASX down 0.29%
  • Commodities : Gold at $1453.65 (-0.24%), Silver at $16.80 (0.00%), Brent Oil at $62.40 (+0.35%), WTI Oil at $57.05 (+0.33%)
  • Rates : US 10-year yield at 1.935, UK 10-year yield at 0.811, Germany 10-year yield at -0.250

News & Data:

  • (NZD) Inflation Expectations q/q 1.80% vs 1.86% previous
  • (AUD) NAB Business Confidence 2 vs 0 previous
  • (GBP) Manufacturing Production m/m -0.40% vs -0.20% expected
  • (GBP) GDP m/m -0.10% vs -0.10% expected
  • (GBP) Prelim GDP q/q 0.30% vs 0.40% expected
  • (CNY) New Loans 661B vs 800B expected
  • Westpac Now Sees RBNZ Cutting Cash Rate (Saw Rate Being Held At 1%)
  • China should cut rates, but not use monetary flooding: central bank advisor

Markets Update:

Asian stock markets are mixed on Tuesday with investors treading cautiously following the lackluster cues overnight from Wall Street amid uncertainty about a potential U.S.-China trade deal and an escalation of violence in Hong Kong. Investors also looked ahead to a speech by U.S. President Donald Trump at the Economic Club of New York later in the day.

Trump wrongfooted markets over the weekend when he said there had been incorrect reporting about U.S. willingness to lift tariffs on China. On a more positive note, Politico reported Trump would announce this week that he is delaying a decision on whether to slap tariffs on imported European Union autos for another six months.

Mainland Chinese shares were lower by the afternoon as the Shenzhen component fell 0.1% and the Shenzhen composite declined 0.4%. Meanwhile, market movements in Hong Kong continue to be monitored, as the Hang Seng index rose 0.3% with shares of Chinese tech giant Tencent gaining more than 1%. Japan’s Nikkei 225 was 0.8% higher in afternoon trade while the Topix index gained 0.2%.

In currency markets, the main action was in sterling which hit a six-month high on the euro after the Brexit Party said it would not contest previously Conservative held seats in the UK election. The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 98.226 after seeing levels above 98.3 yesterday.

Spot gold suffered a third day of declines, to touch its lowest since early August at $1,453.65. Oil prices edged lower as the lack of progress on U.S.-China trade negotiations kept prices pressured, though bullish inventory data offered some support.

Upcoming Events:

  • 09:30 AM GMT – (GBP) Average Earnings Index 3m/y
  • 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
  • 10:30 AM GMT – (USD) FOMC Member Clarida Speaks
  • 05:00 PM GMT – (USD) President Trump Speaks
  • 11:30 PM GMT – (AUD) Westpac Consumer Sentiment
  • &more…