Global Markets:
- Asian Stock Markets : Nikkei down 2.51%, Shanghai Composite up 1.57%, Hang Seng up 1.66%, ASX down 0.25%
- Commodities : Gold at $1297.15 (+0.18%), Silver at $15.88 (+0.51%), Brent Oil at $56.07 (+0.21%), WTI Oil at $47.31 (+0.47%)
- Rates : US 10-year yield at 2.579, UK 10-year yield at 1.197, Germany 10-year yield at 0.146
News & Data:
- (CNY) Caixin Services PMI 53.9 vs 52.9 expected
- (JPY) Final Manufacturing PMI 52.6 vs 52.4 expected
- (GBP) BRC Shop Price Index y/y 0.30% vs 0.10% previous
- (USD) Total Vehicle Sales 17.6M vs 17.2M expected
- (USD) ISM Manufacturing Prices 54.9 vs 57.9 expected
- (USD) ISM Manufacturing PMI 54.1 vs 57.7 expected
- (USD) Unemployment Claims 231K vs 220K expected
- (USD) ADP Non-Farm Employment Change 271K vs 179K expected
- (USD) Challenger Job Cuts y/y 35.30% vs 51.50% previous
- (EUR) Spanish 10-y Bond Auction 1.40|1.3 vs 1.46|1.9 previous
- (GBP) Construction PMI 52.8 vs 52.9 expected
- (EUR) Private Loans y/y 3.30% vs 3.30% expected
- (EUR) M3 Money Supply y/y 3.70% vs 3.80% expected
- (CHF) Manufacturing PMI 57.8 vs 57 expected
- (EUR) Spanish Unemployment Change -50.6K vs -56.3K expected
Markets Update:
Asian stock markets are mostly lower on Friday following the overnight sell-off on Wall Street as a revenue warning from tech giant Apple and weak U.S. economic data reinforced worries of a global economic slowdown. The Japanese market, which resumed trading after the New Year holidays, is sharply lower.
Japan’s Nikkei 225 dropped 2.5 percent in afternoon trade while the Topix index fell around 1.9 percent, with almost all sectors seeing declines. The Chinese mainland markets rebounded strongly after an earlier slip. The Shanghai composite bounced about 1.6 percent higher while the Shenzhen composite and Shenzhen component jumped 2.3 percent and 2.5 percent, respectively. Hong Kong’s Hang Seng index extended gains to rise 1.3 percent.
The positive moves in China came after the country’s commerce ministry announced that vice-ministerial level trade talks with the U.S. would be held on Jan. 7-8. The Australian market is declining, with stocks lower across the board while gold miners bucked the trend.
Yields on 10-year benchmark paper dropped to 2.55 percent overnight, a staggering turnaround from the highs of 3.25 percent seen as recently as November. The falls kept the dollar on the defensive. The greenback plumbed a more than nine-month low of 105.25 against the safe-haven yen on Thursday, driven by technical factors amid thin holiday trade.
Upcoming Events:
- 10:30 AM GMT – (GBP) Net Lending to Individuals m/m
- 10:30 AM GMT – (GBP) Services PMI
- 11:00 AM GMT – (EUR) CPI Flash Estimate y/y
- 11:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
- 02:30 PM GMT – (CAD) Employment Change
- 02:30 PM GMT – (CAD) Unemployment Rate
- 02:30 PM GMT – (CAD) RMPI m/m
- 02:30 PM GMT – (USD) Average Hourly Earnings m/m
- 02:30 PM GMT – (USD) Non-Farm Employment Change
- 02:30 PM GMT – (USD) Unemployment Rate
- 04:15 PM GMT – (USD) Fed Chair Powell Speaks
- &more…
