Monday 10th February: Asian markets lower as China IP data fails expectations.

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.60%, Shanghai Composite up 0.17%, Hang Seng down 0.75%, ASX down 0.14%
  • Commodities : Gold at $1574.45 (+0.07%), Silver at $17.70 (+0.06%), Brent Oil at $54.52 (+0.09%), WTI Oil at $50.38 (+0.12%)
  • Rates : US 10-year yield at 1.590, UK 10-year yield at 0.571, Germany 10-year yield at -0.388

News & Data:

  • (USD) Unemployment Rate 3.60% vs 3.50% expected
  • (USD) Non-Farm Employment Change 225K vs 163K expected
  • (USD) Average Hourly Earnings m/m 0.20% vs 0.30% expected
  • (CAD) Unemployment Rate 5.50% vs 5.70% expected
  • (CAD) Employment Change 34.5K vs 16.3K expected
  • China’s central bank injects 900 bln into market
  • China Inflation Accelerates on Holiday Demand, Virus Outbreak

Markets Update:

Asian stock markets are in negative territory on Monday following the negative cues from Wall Street Friday and as China’s death toll from the coronavirus outbreak exceeded the global total from the SARS epidemic in 2003. China’s National Health Commission said that as of Sunday night, the death toll in the mainland China from the coronavirus outbreak has risen to 908, while a total of 40,171 infections were confirmed. Factories in China were set to return to work on Monday, but many are expected to remain shut for longer.

Mainland Chinese stocks seesawed throughout the day, with the Shanghai composite last up 0.2% and the Shenzhen component 0.8%. Meanwhile, Hong Kong’s Hang Seng index slipped 0.8%. In Japan, the Nikkei 225 slipped 0.6% in afternoon trade while the Topix index declined 0.7%. South Korea’s Kospi also fell 0.5%. Meanwhile, the S&P/ASX 200 in Australia shed 0.1%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 98.644 after rising from levels below 97.6 last week. Euro zone bond yields fell after German industrial output tumbled in December to notch its biggest fall since January 2009, fanning concerns about the bloc’s biggest economy. Crude oil futures closed lower on Friday as worries about the spread of coronavirus, and its impact on the global economy and energy demand weighed on oil prices. Since Jan. 17, oil prices have fallen by 14% while copper has is down around 10%.

Upcoming Events:

Monday, February 10, 2020

  • 01:15 PM GMT – (USD) FOMC Member Bowman Speaks

Tuesday, February 11, 2020

  • 09:30 AM GMT – (GBP) Prelim GDP q/q
  • 09:30 AM GMT – (GBP) GDP m/m
  • 09:30 AM GMT – (GBP) Manufacturing Production m/m
  • 02:00 PM GMT – (EUR) ECB President Lagarde Speaks
  • 03:00 PM GMT – (USD) Fed Chair Powell Testifies
  • 03:35 PM GMT – (GBP) BOE Gov Carney Speaks
  • 05:00 PM GMT – (GBP) MPC Member Haskel Speaks
  • 07:15 PM GMT – (USD) FOMC Member Kashkari Speaks

Wednesday, February 12, 2020

  • 01:00 AM GMT – (NZD) Official Cash Rate
  • 01:00 AM GMT – (NZD) RBNZ Monetary Policy Statement
  • 01:00 AM GMT – (NZD) RBNZ Rate Statement
  • 02:00 AM GMT – (NZD) RBNZ Press Conference
  • 03:00 PM GMT – (USD) Fed Chair Powell Testifies
  • 03:30 PM GMT – (USD) Crude Oil Inventories
  • 07:10 PM GMT – (NZD) RBNZ Gov Orr Speaks

Thursday, February 13, 2020

  • 12:15 AM GMT – (AUD) RBA Gov Lowe Speaks
  • 12:15 AM GMT – (CAD) BOC Gov Poloz Speaks
  • 10:00 AM GMT – (EUR) EU Economic Forecasts
  • 01:30 PM GMT – (USD) CPI m/m
  • 01:30 PM GMT – (USD) Core CPI m/m

Friday, February 14, 2020

  • 07:00 AM GMT – (EUR) German Prelim GDP q/q
  • 01:30 PM GMT – (USD) Core Retail Sales m/m
  • 01:30 PM GMT – (USD) Retail Sales m/m
  • 03:00 PM GMT – (USD) Prelim UoM Consumer Sentiment