Monday 11th November: Hong Kong markets fall on account of heightened tensions

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.26%, Shanghai Composite down 1.75%, Hang Seng down 2.72%, ASX up 0.72%
  • Commodities : Gold at $1463.65 (+0.05%), Silver at $16.83 (+0.03%), Brent Oil at $61.86 (-1.04%), WTI Oil at $56.63 (-1.07%)
  • Rates : US 10-year yield at 1.945, UK 10-year yield at 0.791, Germany 10-year yield at -0.268

News & Data:

  • (CNY) CPI y/y 3.80% vs 3.20% expected
  • (USD) Prelim UoM Consumer Sentiment 95.7 vs 96 expected
  • (CAD) Unemployment Rate 5.50% vs 5.50% expected
  • (CAD) Employment Change -1.8K vs 14.7K expected
  • World Bank’s Garcia Mora on Fintech Trends, Regulation, Digital Currencies
  • BOJ debated whether to boost stimulus if inflation momentum stalls: October summary

CFTC Positioning Data:

  • EUR short 61K vs 53K short last week. Shorts increased by 8K
  • GBP short 29K vs 32K short last week. Shorts trimmed by 3K
  • JPY short 27K vs 20K short last week. Shorts increased by 7K
  • CHF short 14k vs 12k short last week. Shorts increased by 2K
  • AUD short 27k vs 40k short last week. Shorts trimmed by 13K
  • NZD short 39K vs 40K short last week. Shorts trimmed by 1K
  • CAD long 54 vs 44K long last week.  Longs increased by 10K.

Markets Update:

Asian stock markets, led by Hong Kong, are mostly lower on Monday despite the modest gains on Wall Street Friday as uncertainty about a U.S.-China trade deal and rising political turmoil in Hong Kong dampened investor sentiment. According to reports, at least two protesters were injured in Hong Kong after police opened fire at mass demonstrations in the city.

In Hong Kong, the Hang Seng index was deep in negative territory, declining 2.7% as political turmoil in the city worsened. At least two protesters were said to be injured when local police opened fire on Monday at mass demonstrations.

Japan’s Nikkei 225 reversed early gains to trade down 0.3% while the Topix index was flat. South Korea’s Kospi fell 0.6% as major chipmaker SK Hynix slid 1.70%. In Australia, the benchmark ASX 200 defied the general downward trend in the region and rose 0.7%.

Data on October U.S. industrial production and retail sales, along with the National Federation of Independent Business’s monthly small business survey, are scheduled for release this week. Analysts said the outlook for equities was highly dependent on U.S. economic data as a U.S.-China trade agreement would help bolster manufacturing and industrial sectors.

Upcoming Events:

Monday, November 11, 2019  

  • 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

Tuesday, November 12, 2019  

  • 12:30 AM GMT – (AUD) NAB Business Confidence
  • 02:00 AM GMT – (NZD) Inflation Expectations q/q
  • 12th-14th GMT – (CNY) New Loans
  • 09:30 AM GMT – (GBP) Average Earnings Index 3m/y
  • 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
  • 10:30 AM GMT – (USD) FOMC Member Clarida Speaks
  • 11:30 PM GMT – (AUD) Westpac Consumer Sentiment

Wednesday, November 13, 2019  

  • 12:30 AM GMT – (AUD) Wage Price Index q/q
  • 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
  • 09:30 AM GMT – (GBP) CPI y/y
  • 01:30 PM GMT – (USD) CPI m/m
  • 01:30 PM GMT – (USD) Core CPI m/m
  • 04:00 PM GMT – (USD) Fed Chair Powell Testifies
  • 10:50 PM GMT – (AUD) RBA Assist Gov Bullock Speaks

Thursday, November 14, 2019  

  • 12:30 AM GMT – (AUD) Employment Change
  • 12:30 AM GMT – (AUD) Unemployment Rate
  • 02:00 AM GMT – (CNY) Fixed Asset Investment ytd/y
  • 02:00 AM GMT – (CNY) Industrial Production y/y
  • 07:00 AM GMT – (EUR) German Prelim GDP q/q
  • 09:30 AM GMT – (GBP) Retail Sales m/m
  • 01:30 PM GMT – (USD) Core PPI m/m
  • 01:30 PM GMT – (USD) PPI m/m
  • 02:10 PM GMT – (USD) FOMC Member Clarida Speaks
  • 03:00 PM GMT – (USD) Fed Chair Powell Testifies
  • 04:00 PM GMT – (USD) Crude Oil Inventories
  • 05:00 PM GMT – (CHF) Gov Board Member Maechler Speaks
  • 09:30 PM GMT – (NZD) Business NZ Manufacturing Index

Friday, November 15, 2019  

  • 01:30 AM GMT – (AUD) RBA Deputy Gov Debelle Speaks
  • 02:45 AM GMT – (CAD) BOC Gov Poloz Speaks
  • 01:30 PM GMT – (CAD) Gov Council Member Lane Speaks
  • 01:30 PM GMT – (USD) Core Retail Sales m/m
  • 01:30 PM GMT – (USD) Retail Sales m/m
  • 05:00 PM GMT – (EUR) German Buba President Weidmann Speaks
  • &more…