Global Markets:
- Asian Stock Markets : Nikkei up 0.18%, Shanghai Composite up 0.66%, Hang Seng down 0.63%, ASX up 0.22%
- Commodities : Gold at $1560.95 (+0.04%), Silver at $18.09 (+0.08%), Brent Oil at $65.55 (+1.08%), WTI Oil at $59.12 (+0.92%)
- Rates : US 10-year yield at 1.825, UK 10-year yield at 0.633, Germany 10-year yield at -0.210
News & Data:
- (USD) Prelim UoM Consumer Sentiment 99.1 vs 99.3 expected
- (USD) Building Permits 1.42M vs 1.47M expected
- (GBP) Retail Sales m/m -0.60% vs 0.50% expected
- Markets assess impact of US-China deal; slowdown seen ahead of Lunar New Year holiday
- CFTC CoT – Net Length for DXY Index Futures Climbed Mildly Higher
Markets Update:
Asian stock markets mildly rose on Monday despite the record highs on Wall Street Friday, with the focus now turning to the release of corporate earnings results this week. Nevertheless, upbeat economic data from China and the U.S. last week has boosted investor sentiment. Investors also cheered as the People’s Bank of China (PBoC) kept the loan prime rate (LPR) unchanged.
Mainland Chinese stocks saw gains by the afternoon, with the Shanghai composite up 0.7% while the Shenzhen composite was 1.2% higher. Shares of Chinese drugmakers and facial mask firms also surged amid concerns over a coronavirus outbreak in the country. The Hang Seng index in Hong Kong, however, slipped 0.6% as shares of life insurer AIA dropped more than 1.5%.
In Japan, the Nikkei 225 rose 0.2% despite shares of index heavyweight Fast Retailing falling more than 1%. South Korea’s Kospi added 0.5% as shares of industry heavyweight Samsung Electronics jumped about 2% after the firm announced some leadership changes, according to a Reuters report. Meanwhile, the Australian market is extending its winning streak to a fifth straight session.
The Fed’s buying binge on Treasury bills has kept bonds bid even as stocks surged and economic data stayed healthy. Yields on two-year notes are dead in line with the overnight cash rate at 1.56%, compared to 2.62% this time last year. Against a basket of currencies, the dollar was flat at 97.616, moving away from the recent trough of 96.355.
Oil prices were higher in the afternoon of Asian trading hours, with international benchmark Brent crude futures up 1.1% to $65.55 per barrel – Concerns about a cut in supply from Libya were seen as a reason.
Upcoming Events:
Tuesday, January 21, 2020
- Tentative – (JPY) BOJ Outlook Report
- Tentative – (JPY) Monetary Policy Statement
- Tentative – (JPY) BOJ Press Conference
- Day 1 – (All) WEF Annual Meetings
- 09:30 AM GMT – (GBP) Average Earnings Index 3m/y
- 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
- 01:30 PM GMT – (CAD) Manufacturing Sales m/m
- 11:30 PM GMT – (AUD) Westpac Consumer Sentiment
Wednesday, January 22, 2020
- Day 2 – (All) WEF Annual Meetings
- 01:30 PM GMT – (CAD) CPI m/m
- 01:30 PM GMT – (CAD) Common CPI y/y
- 01:30 PM GMT – (CAD) Median CPI y/y
- 01:30 PM GMT – (CAD) Trimmed CPI y/y
- 03:00 PM GMT – (CAD) BOC Monetary Policy Report
- 03:00 PM GMT – (CAD) BOC Rate Statement
- 03:00 PM GMT – (CAD) Overnight Rate
- 04:15 PM GMT – (CAD) BOC Press Conference
Thursday, January 23, 2020
- 12:30 AM GMT – (AUD) Employment Change
- 12:30 AM GMT – (AUD) Unemployment Rate
- Day 3 – (All) WEF Annual Meetings
- 12:45 PM GMT – (EUR) Main Refinancing Rate
- 12:45 PM GMT – (EUR) Monetary Policy Statement
- 01:30 PM GMT – (EUR) ECB Press Conference
- 04:00 PM GMT – (USD) Crude Oil Inventories
- 09:45 PM GMT – (NZD) CPI q/q
Friday, January 24, 2020
- 08:15 AM GMT – (EUR) French Flash Services PMI
- 08:15 AM GMT – (EUR) French Flash Manufacturing PMI
- 08:30 AM GMT – (EUR) German Flash Manufacturing PMI
- 08:30 AM GMT – (EUR) German Flash Services PMI
- 08:30 AM GMT – (GBP) MPC Member Haskel Speaks
- 09:00 AM GMT – (EUR) Flash Manufacturing PMI
- 09:00 AM GMT – (EUR) Flash Services PMI
- Day 4 – (All) WEF Annual Meetings
- 09:30 AM GMT – (EUR) ECB President Lagarde Speaks
- 09:30 AM GMT – (GBP) Flash Manufacturing PMI
- 09:30 AM GMT – (GBP) Flash Services PMI
- 01:30 PM GMT – (CAD) Core Retail Sales m/m
- 01:30 PM GMT – (CAD) Retail Sales m/m
- 02:45 PM GMT – (USD) Flash Manufacturing PMI