Global Markets:
• Asian Stock Markets : Nikkei down 0.65%, Shanghai Composite down 0.22%, Hang Seng down 0.06%, ASX up 0.68%
• Commodities : Gold at $1300.85 (+0.21%), Silver at $15.78 (+0.50%), Brent Oil at $60.89 (-1.14%), WTI Oil at $53.06 (-1.17%)
• Rates : US 10-year yield at 2.740, UK 10-year yield at 1.309, Germany 10-year yield at 0.190
News & Data:
• (EUR) Belgian NBB Business Climate -1.5 vs -1.4 expected
• (GBP) CBI Realized Sales 0 vs 3 expected
• (GBP) High Street Lending 38.8K vs 38.9K expected
• (EUR) German Ifo Business Climate 99.1 vs 100.7 expected
• Japan Data Scandal: Tokyo Admits 40% Of Its Economic Data Is “Fake News”
• BOJ Minutes: Weak China Econ Worry; Eye Oil Impact
• ‘Trump is having an impact’: NATO head credits president’s tough talk for $100B boost
Markets Update:
Asian stock markets gave up early gains Monday following the positive lead from Wall Street Friday after U.S. President Donald Trump announced an agreement to temporarily end the record-setting 35-day-old government shutdown. Investors now look ahead to the next round of U.S.-China trade talks set to begin later this week in Washington.
The mainland Chinese markets, watched closely due to the ongoing trade war between Beijing and Washington, reversed course to trade flat: The Shanghai composite and Shenzhen composite both traded lower by 0.2%. Hang Seng is trading flat. Australia’s stock market was closed on Monday for a public holiday. The Japanese market is declining despite the positive cues from Wall Street, as investors turned cautious ahead of earnings results from major Japanese companies; Nikkei is lower by 0.65%.
In the currency market, the pound hovered near a three-month high of $1.3218 set on Friday on the back of optimism that Britain can avoid a no-deal Brexit. Britain is set to leave the European Union on March 29, but the country’s members of parliament remain far from agreeing a divorce deal and longer-term prospects for sterling remained far from clear.
The euro was also on the front foot against the sagging dollar, which was on the defensive ahead of the Federal Reserve’s Jan. 29-30 policy meeting where it is expected to leave interest rates unchanged after raising them four times last year. The attention will be on the policy outlook as the Fed has signalled a slower pace of rate increases this year with markets speculating it might pause its tightening cycle soon.
Oil prices rose toward the end of last week as political turmoil in Venezuela threatened to tighten crude supply, with the United States signalling it may impose sanctions on exports from the South American nation.
Upcoming Events:
Monday, January 28, 2019
• 03:00 PM GMT – (EUR) ECB President Draghi Speaks
• 03:30 PM GMT – (GBP) BOE Gov Carney Speaks
• 10:45 PM GMT – (NZD) Trade Balance
Tuesday, January 29, 2019
• 09:00 AM GMT – (EUR) Spanish Unemployment Rate
• 04:00 PM GMT – (USD) CB Consumer Confidence
Wednesday, January 30, 2019
• 01:30 AM GMT – (AUD) CPI q/q
• 01:30 AM GMT – (AUD) Trimmed Mean CPI q/q
• All Day – (EUR) German Prelim CPI m/m
• 10:30 AM GMT – (GBP) Net Lending to Individuals m/m
• 02:15 PM GMT – (USD) ADP Non-Farm Employment Change
• 08:00 PM GMT – (USD) FOMC Statement
• 08:00 PM GMT – (USD) Federal Funds Rate
• 08:30 PM GMT – (USD) FOMC Press Conference
Thursday, January 31, 2019
• 02:00 AM GMT – (CNY) Manufacturing PMI
• 09:00 AM GMT – (EUR) Spanish Flash GDP q/q
• 11:00 AM GMT – (EUR) Prelim Flash GDP q/q
• 02:30 PM GMT – (CAD) GDP m/m
• 02:30 PM GMT – (CAD) RMPI m/m
• 02:30 PM GMT – (USD) Core PCE Price Index m/m
• 02:30 PM GMT – (USD) Employment Cost Index q/q
• 02:30 PM GMT – (USD) Personal Spending m/m
• 03:45 PM GMT – (USD) Chicago PMI
• 05:00 PM GMT – (EUR) German Buba President Weidmann Speaks
• 06:30 PM GMT – (CAD) Gov Council Member Wilkins Speaks
Friday, February 01, 2019
• 02:45 AM GMT – (CNY) Caixin Manufacturing PMI
• 10:30 AM GMT – (GBP) Manufacturing 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 – (USD) Average Hourly Earnings m/m
• 02:30 PM GMT – (USD) Non-Farm Employment Change
• 02:30 PM GMT – (USD) Unemployment Rate
• 04:00 PM GMT – (USD) ISM Manufacturing PMI
• 04:00 PM GMT – (USD) Revised UoM Consumer Sentiment
• &more…
