Monday 29th June: Asian markets continue to trade lower as second wave fears come closer to reality

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Global Markets:

  • Asian Stock Markets : Nikkei down 2.30%, Shanghai Composite down 0.61%, Hang Seng down 0.99%, ASX down 1.51%
  • Commodities : Gold at $1781.90 (+0.09%), Silver at $18.00 (-0.19%), Brent Oil at $40.27 (-1.61%), WTI Oil at $37.80 (-1.79%)
  • Rates : US 10-year yield at 0.648, UK 10-year yield at 0.178, Germany 10-year yield at -0.471

News & Data:

  • (USD) Revised UoM Consumer Sentiment 78.1 vs 79.1 expected
  • (USD) Personal Spending m/m 8.20% vs 8.90% expected
  • (USD) Core PCE Price Index m/m 0.10% vs 0.00% expected
  • Boris Johnson Vows Heavy Spending on Economy, Rejects Austerity
  • S. Covid-19 Surge Likely to Continue for Weeks, Frieden Says

CFTC Positioning Data:

  • EUR long 118K vs 117K long last week. Longs increased by 1K.
  • GBP short 19K vs 16K short last week. Shorts increased by 3K.
  • JPY long 27K vs 22K long last week. Longs increased by 5K.
  • CHF long 1K vs 2K long last week. Longs trimmed by 1K
  • AUD short 5k vs 7K short last week. Shorts trimmed by 2K
  • NZD short 0K vs 2K short last week. Shorts trimmed by 2K
  • CAD short 21k vs 25K short last week. Shorts trimmed by 4K.

Markets Update:

Asian stock markets are lower on Monday following the negative cues from Wall Street Friday and on worries that a surge in the coronavirus cases worldwide could lead to the re-imposition of lockdowns and other containment measures.

According to data from Johns Hopkins University, the number of coronavirus cases worldwide has surpassed 10 million, while the global death toll from the pandemic is more than 500,000. Investors will also be looking to the testimonies of both Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin before the House Financial Services Committee on Tuesday for further clues on the U.S. economic recovery.

Mainland Chinese stocks declined on the day. The Shanghai composite was down 0.6% while the Shenzhen component slipped 0.5%. Hong Kong’s Hang Seng index dropped 1%. Meanwhile, Australia’s S&P/ASX 200 fell 1.5%. In Japan, the Nikkei 225 fell 2.3% as shares of index heavyweight Fast Retailing and conglomerate Softbank Group dropped more than 2% each.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.176 after rising from levels below 97 last week. Oil prices slipped amid concerns the pandemic would slow the reopening of some economies and thus hurt demand for fuel. In commodity markets, gold held near its highest since early 2012 at $1,782 an ounce.

 

Upcoming Events:

Monday, June 29, 2020

  • 09:30 AM GMT – (GBP) BOE Gov Bailey Speaks
  • 02:00 PM GMT – (USD) Pending Home Sales m/m

Tuesday, June 30, 2020

  • 01:00 AM GMT – (CNY) Manufacturing PMI
  • 01:00 AM GMT – (CNY) Non-Manufacturing PMI
  • 01:00 AM GMT – (NZD) ANZ Business Confidence
  • 02:30 AM GMT – (AUD) RBA Deputy Gov Debelle Speaks
  • 12:30 PM GMT – (CAD) GDP m/m
  • 01:45 PM GMT – (USD) Chicago PMI
  • 02:00 PM GMT – (USD) CB Consumer Confidence
  • 04:30 PM GMT – (USD) Fed Chair Powell Testifies

Wednesday, July 01, 2020

  • 11:00 AM GMT – (GBP) MPC Member Haskel Speaks
  • 12:15 PM GMT – (USD) ADP Non-Farm Employment Change
  • 02:00 PM GMT – (USD) ISM Manufacturing PMI
  • 06:00 PM GMT – (USD) FOMC Meeting Minutes

Thursday, July 02, 2020

  • 01:30 AM GMT – (AUD) Trade Balance
  • 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
  • 12:30 PM GMT – (USD) Unemployment Claims

Friday, July 03, 2020

  • 08:30 AM GMT – (GBP) Final Services PMI

Saturday, July 04, 2020

  • 10:40 AM GMT – (EUR) ECB President Lagarde Speaks