Global Markets:
- Asian Stock Markets : Nikkei up 0.95%, Shanghai Composite up 3.15%, Hang Seng up 0.52%, ASX down 0.77%
- Commodities : Gold at $1600.70 (+2.17%), Silver at $16.93 (+2.86%), Brent Oil at $51.16 (+3.00%), WTI Oil at $45.95 (+2.66%)
- Rates : US 10-year yield at 1.104, UK 10-year yield at 0.448, Germany 10-year yield at -0.612
News & Data:
- (CNY) Caixin Manufacturing PMI 40.3 vs 46.1 expected
- (AUD) Company Operating Profits q/q -3.50% vs -1.20% expected
- (CNY) Non-Manufacturing PMI 29.6 vs 51.4 expected
- (CNY) Manufacturing PMI 35.7 vs 45.1 expected
- (USD) Chicago PMI 49 vs 46.1 expected
- (USD) Personal Spending m/m 0.20% vs 0.30% expected
- (USD) Core PCE Price Index m/m 0.10% vs 0.20% expected
- (CAD) RMPI m/m -2.20% vs 2.10% expected
- (CAD) GDP m/m 0.30% vs 0.10% expected
- (EUR) German Prelim CPI m/m 0.40% vs 0.30% expected
CFTC Positioning Data:
- EUR short 114K vs 92K short last week. Shorts increased by 23K
- GBP long 30K vs 29K long last week. Longs increased by 1K
- JPY short 56K vs 27K short last week. Shorts increased by 29k
- CHF long 1K vs 2K long last week. Longs decreased by 1K
- AUD short 44k vs 38K short last week. Shorts increased by 6K
- NZD short 15K vs 12K short last week. Shorts increased by 3K
- CAD long 15k vs 8K long last week. Longs increased by 7K.
Markets Update:
Asian stock markets are mostly higher on Monday, with some of the markets recovering after a weak start despite worries about the rapid spread of the coronavirus and its impact on the global economy.
The U.S., Australia and Thailand have all reported the first coronavirus-related deaths, while data released over the weekend showing weak factory activity in China raised fears of a global recession. However, investors are now increasingly optimistic that major central banks will cut interest rates to support the global economy. Federal Reserve Chairman Jerome Powell said the central bank will “act as appropriate to support the economy” amid the evolving risks posed by the coronavirus outbreak.
Mainland Chinese stocks surged by the afternoon as they attempted to recover from Friday’s steep fall. The Shanghai composite was about 3.2% higher while the Shenzhen component added 3.9%. Hong Kong’s Hang Seng index also advanced 0.5%. Elsewhere, the Nikkei 225 in Japan recovered from an earlier slip to rise 1%. Stocks in Australia, however, continued to decline on Monday, with the S&P/ASX 200 down about 0.8% after it tumbled through last week.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.946 after declining from levels around 99.6 last week. The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, traded at 108.18 per dollar after strengthening from levels above 110 last week.
On Monday, oil extended losses before steadying on expectations OPEC may cut production. A further set of manufacturing surveys from around the world due later on Monday will provide investors more detail on the virus’ impact on the global economy. Later in the week, central bank meetings in Australia, on Tuesday, and Canada, on Wednesday, will be closely watched.
Upcoming Events:
Monday, March 02, 2020
- 09:30 AM GMT – (GBP) Final Manufacturing PMI
- 03:00 PM GMT – (USD) ISM Manufacturing PMI
Tuesday, March 03, 2020
- 12:30 AM GMT – (AUD) Building Approvals m/m
- 12:30 AM GMT – (AUD) Current Account
- 03:30 AM GMT – (AUD) Cash Rate
- 03:30 AM GMT – (AUD) RBA Rate Statement
- 09:30 AM GMT – (GBP) BOE Gov Carney Speaks
- 10:00 AM GMT – (EUR) CPI Flash Estimate y/y
Wednesday, March 04, 2020
- 12:30 AM GMT – (AUD) GDP q/q
- 01:45 AM GMT – (CNY) Caixin Services PMI
- 09:30 AM GMT – (GBP) Final Services PMI
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 03:00 PM GMT – (CAD) BOC Rate Statement
- 03:00 PM GMT – (CAD) Overnight Rate
- 03:00 PM GMT – (USD) ISM Non-Manufacturing PMI
- 03:30 PM GMT – (USD) Crude Oil Inventories
Thursday, March 05, 2020
- 12:30 AM GMT – (AUD) Trade Balance
- All Day – (All) OPEC Meetings
- 05:00 PM GMT – (GBP) BOE Gov Carney Speaks
- 05:45 PM GMT – (CAD) BOC Gov Poloz Speaks
Friday, March 06, 2020
- 12:30 AM GMT – (AUD) Retail Sales m/m
- All Day – (All) OPEC-JMMC Meetings
- 01:30 PM GMT – (CAD) Employment Change
- 01:30 PM GMT – (CAD) Trade Balance
- 01:30 PM GMT – (CAD) Unemployment Rate
- 01:30 PM GMT – (USD) Average Hourly Earnings m/m
- 01:30 PM GMT – (USD) Non-Farm Employment Change
- 01:30 PM GMT – (USD) Unemployment Rate