Global Markets:
- Asian Stock Markets : Nikkei up 0.13%, Shanghai Composite down 2.75%, Hang Seng down 0.03%, ASX up 0.04%
- Commodities : Gold at $1560.25 (-0.33%), Silver at $17.79 (-0.23%), Brent Oil at $62.31 (+0.44%), WTI Oil at $55.82 (+0.41%)
- Rates : US 10-year yield at 1.743, UK 10-year yield at 0.583, Germany 10-year yield at -0.303
News & Data:
- (NZD) CPI q/q 0.50% vs 0.40% expected
- (USD) Crude Oil Inventories -0.4M vs -0.1M expected
- (EUR) Main Refinancing Rate 0.00% vs 0.00% expected
- (AUD) Unemployment Rate 5.10% vs 5.20% expected
- (AUD) Employment Change 28.9K vs 12.2K expected
- Australian Dollar May Not Have Much to Gain From US-China Deal
- Fed’s Repos Drop to Oct Level, T-Bills Surge, But MBS Fall, and Total Assets Decline Further
Markets Update:
Asian stock markets are mixed on Friday after the World Health Organization or WHO said it is still too early to declare the coronavirus outbreak in China a global public health emergency. Nevertheless, investors are cautious amid worries over the rapid spread of the deadly virus. Japan’s health ministry confirmed a second case of the coronavirus in the country. The death toll in China has now risen to 25, while the number of confirmed cases jumped to 830.
Major markets across the region such as China and South Korea were closed on Friday ahead of the Lunar New Year that starts on Saturday. Hong Kong’s Hang Seng index recovered from an earlier slip, trading flat. The Nikkei 225 in Japan closed 0.13% higher while the Topix index finished its trading session flat. Meanwhile, shares in Australia rose slightly, as the S&P/ASX 200 closed fractionally higher by half a percent.
In the currency market, the concerns about the coronavirus supported the safe-haven yen. The euro fell to a seven-week low versus the dollar of $1.1036 overnight after the European Central Bank left its policy rates unchanged but President Christine Lagarde struck a slightly dovish tone than some had expected.
Oil prices remained under pressure on growing concern that fuel demand will weaken as the spread of a respiratory virus from China dents travel and darkens the economic outlook. Elsewhere, copper prices fell to their lowest in more than six weeks overnight.
Upcoming Events:
- 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
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