Monday 25th November: Asian markets post gains, as investors hope for a phase-one trade deal

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.78%, Shanghai Composite up 0.49%, Hang Seng up 1.59%, ASX up 0.32%
  • Commodities : Gold at $1464.90 (-0.38%), Silver at $17.01 (-0.79%), Brent Oil at $62.59 (+0.35%), WTI Oil at $57.94 (+0.29%)
  • Rates : US 10-year yield at 1.784, UK 10-year yield at 0.703, Germany 10-year yield at -0.366

News & Data:

  • (USD) Flash Manufacturing PMI 52.2 vs 51.5 expected
  • (CAD) Retail Sales m/m -0.10% vs -0.30% expected
  • (CAD) Core Retail Sales m/m 0.20% vs -0.10% expected
  • (GBP) Flash Services PMI 48.6 vs 50.1 expected
  • (GBP) Flash Manufacturing PMI 48.3 vs 48.8 expected
  • (EUR) Flash Services PMI 51.5 vs 52.4 expected
  • (EUR) Flash Manufacturing PMI 46.6 vs 46.4 expected
  • (EUR) German Flash Services PMI 51.3 vs 52 expected
  • (EUR) German Flash Manufacturing PMI 43.8 vs 42.9 expected
  • (EUR) French Flash Manufacturing PMI 51.6 vs 50.9 expected
  • (EUR) French Flash Services PMI 52.9 vs 53 expected
  • No ‘phase two’ U.S.-China deal on the horizon, officials say
  • China to Raise Penalties on IP Rights Violations

CFTC Positioning Data:

  • EUR short 63K vs 58K short last week. Shorts increased by 5K
  • GBP short 32K vs 28K short last week. Shorts increased by 4K
  • JPY short 35K vs 35K short last week. Unchanged
  • CHF short 16K vs 15K short last week. Shorts increased by 1K
  • AUD short 47k vs 41K short last week. Shorts increased by 6K
  • NZD short 35K vs 36K short last week. Shorts trimmed by 1K
  • CAD long 29k vs 42K long last week. Longs trimmed by 13K.

Markets Update:

Asian shares staged a cautious rally on Monday as investors dared to hope for some progress in the endless Sino-U.S. trade dispute, while the outperformance of recent U.S. economic data gave the dollar a leg up on its peers.

Mainland Chinese stocks were mixed by the afternoon. The Shanghai composite rose 0.5%, while the Shenzhen component declined 0.2%. Hong Kong’s Hang Seng index led gains among major markets regionally as it jumped 1.6% by the afternoon. The moves came after pro-democracy candidates surged to a landslide victory following a record voter turnout, Reuters reported.

Stocks in Australia edged higher, as the S&P/ASX 200 gained about 0.3%. The Nikkei 225 in Japan rose 0.8% in afternoon trade, with shares of index heavyweights Fast Retailing, Softbank Group and Fanuc all seeing gains. Meanwhile, South Korea’s Kospi also gained 1% as shares of industry heavyweight Samsung Electronics added more than 1%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.279 after rising from levels below 98.0 on Friday. Federal Reserve Chair Jerome Powell speaks later on Monday and is expected to underline the steady outlook for rates given the better economic figures.

Oil prices held near two-month highs helped by expectations of an extension to OPEC+ production cuts.

Upcoming Events:

Monday, November 25, 2019

  • 09:00 AM GMT – (EUR) German Ifo Business Climate
  • 09:45 PM GMT – (NZD) Core Retail Sales q/q
  • 09:45 PM GMT – (NZD) Retail Sales q/q
  • 11:50 PM GMT – (AUD) RBA Deputy Gov Debelle Speaks

Tuesday, November 26, 2019

  • 09:05 AM GMT – (AUD) RBA Gov Lowe Speaks
  • 03:00 PM GMT – (USD) CB Consumer Confidence
  • 03:00 PM GMT – (USD) Richmond Manufacturing Index
  • 08:00 PM GMT – (NZD) RBNZ Financial Stability Report
  • 10:00 PM GMT – (NZD) RBNZ Gov Orr Speaks

Wednesday, November 27, 2019

  • 12:30 AM GMT – (AUD) Construction Work Done q/q
  • 01:30 PM GMT – (USD) Core Durable Goods Orders m/m
  • 01:30 PM GMT – (USD) Durable Goods Orders m/m
  • 01:30 PM GMT – (USD) Prelim GDP q/q
  • 02:45 PM GMT – (USD) Chicago PMI
  • 03:00 PM GMT – (USD) Core PCE Price Index m/m
  • 03:00 PM GMT – (USD) Personal Spending m/m
  • 03:30 PM GMT – (USD) Crude Oil Inventories

Thursday, November 28, 2019

  • 12:00 AM GMT – (NZD) ANZ Business Confidence
  • 12:30 AM GMT – (AUD) Private Capital Expenditure q/q
  • All Day – (EUR) German Prelim CPI m/m
  • 01:30 PM GMT – (CAD) Current Account

Friday, November 29, 2019

  • 10:00 AM GMT – (EUR) CPI Flash Estimate y/y
  • 01:30 PM GMT – (CAD) GDP m/m
  • 01:30 PM GMT – (CAD) RMPI m/m

Saturday, November 30, 2019

  • 01:00 AM GMT – (CNY) Manufacturing PMI
  • 01:00 AM GMT – (CNY) Non-Manufacturing PMI
  • &more…