Monday 23rd March: Corona carnage continues – Japan bucks the trend

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Global Markets:

  • Asian Stock Markets : Nikkei up 2.02%, Shanghai Composite down 3.11%, Hang Seng down 5.14%, ASX down 5.62%
  • Commodities : Gold at $1490.00 (+0.36%), Silver at $12.50 (+0.93%), Brent Oil at $25.98 (-3.71%), WTI Oil at $22.71 (+0.35%)
  • Rates : US 10-year yield at 0.818, UK 10-year yield at 0.541, Germany 10-year yield at -0.348

News & Data:

  • (CAD) Core Retail Sales m/m -0.10% vs 0.20% expected
  • (CAD) Retail Sales m/m 0.40% vs 0.30% expected
  • China central bank official says too early to talk of financial crisis
  • NZ goes into lockdown, Government announces further rescue measures

CFTC Positioning Data:

  • EUR short 13K vs 87K short last week. Shorts decreased by 74K
  • EUR long 32K vs 13K short last week. Longs increased by 45k
  • GBP long 19K vs 26K long last week. Longs decreased by 7K
  • JPY long 33K vs 8K long last week. Longs increased by 25K
  • CHF long 7K vs square last week. Longs increased by 7K
  • AUD short 28k vs 54K short last week. Shorts decreased by 26K
  • NZD short 20K vs 15K short last week. Shorts increased by 5K
  • CAD short 9k vs 2K short last week. Longs increased by 7K.

Markets Update:

Asian stock markets are sharply lower on Monday amid growing worries about the impact of the coronavirus pandemic on the global economy. More countries and regions are resorting to shutdowns and border closures to prevent the spread of COVID-19, raising concerns about their impact on economic activity.

The coronavirus pandemic continues to spread rapidly across the world. According to data from the World Health Organization, the number of people infected with the coronavirus is now more than 294,000, while 12,900 people have died due to the pandemic.

The Australian market is tumbling on Monday following the sharp losses on Wall Street. In addition, the Australian government has ordered operators of venues where people gather, such as pubs, cinemas, gyms and restaurants to close on Monday due to COVID-19. Several Australian states are planning to shut down more businesses, with only those deemed essential services to remain open.

The Nikkei 225 in Japan bucked the overall trend regionally as it jumped 2.02%. South Korea stocks also saw substantial declines, with the Kospi falling 5.34% to end its trading day. Mainland Chinese stocks were also lower on the day, with the Shanghai composite down 3.11%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 102.017 after breaching the 100 level last week. Oil prices were mixed in the afternoon of Asian hours on Monday as international benchmark Brent crude futures fell 3.7% to $26 per barrel.

Upcoming Events:

Monday, March 23, 2020

  • All Day – (All) G20 Meetings

Tuesday, March 24, 2020

  • 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
  • 09:00 AM GMT – (EUR) Flash Manufacturing PMI
  • 09:00 AM GMT – (EUR) Flash Services PMI
  • 09:30 AM GMT – (GBP) Flash Manufacturing PMI
  • 09:30 AM GMT – (GBP) Flash Services PMI
  • 01:45 PM GMT – (USD) Flash Manufacturing PMI
  • 02:00 PM GMT – (USD) Richmond Manufacturing Index

Wednesday, March 25, 2020

  • 09:00 AM GMT – (EUR) German Final ifo Business Climate
  • 09:30 AM GMT – (GBP) CPI y/y
  • 09:30 AM GMT – (GBP) PPI Input m/m
  • 12:30 PM GMT – (USD) Core Durable Goods Orders m/m
  • 12:30 PM GMT – (USD) Durable Goods Orders m/m

Thursday, March 26, 2020

  • 09:30 AM GMT – (GBP) Retail Sales m/m
  • 12:00 PM GMT – (GBP) MPC Official Bank Rate Votes
  • 12:00 PM GMT – (GBP) Monetary Policy Summary
  • 12:00 PM GMT – (GBP) Official Bank Rate
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 12:30 PM GMT – (USD) Final GDP q/q

Friday, March 27, 2020

  • 12:30 PM GMT – (USD) Core PCE Price Index m/m
  • 12:30 PM GMT – (USD) Personal Spending m/m