Global Markets:
- Asian Stock Markets : Nikkei up 2.86%, Shanghai Composite up 1.79%, Hang Seng up 1.57%, ASX up 0.17%
- Commodities : Gold at $1260.60 (+0.38%), Silver at $16.18 (+0.66%), Brent Oil at $77.59 (+0.62%), WTI Oil at $74.16 (+0.49%)
- Rates : US 10-year yield at 2.842, UK 10-year yield at 1.268, Germany 10-year yield at 0.294
News & Data:
- (CAD) Ivey PMI 63.1 vs 63.2 expected
- (USD) Unemployment Rate 4.00% vs 3.80% expected
- (USD) Non-Farm Employment Change 213K vs 195K expected
- (USD) Average Hourly Earnings m/m 0.20% vs 0.30% expected
- (CAD) Unemployment Rate 6.00% vs 5.80% expected
- (CAD) Trade Balance -2.8B vs -2.2B expected
- (CAD) Employment Change 31.8K vs 22.3K expected
- (GBP) Halifax HPI m/m 0.30% vs 0.30% expected
- Sea of red in Treasury market may signal bond boom is over
- Japanese Yen Steady As Kuroda Sticks Firmly To His Monetary Guns
- British Brexit Secretary David Davis resigns over EU exit plan: source
- German Cars and American Steak: Early Trade War Victims Emerge
Markets Update:
Asian share markets rallied on Monday as favorable U.S. jobs data whetted risk appetites, while sterling slipped after two members of the British government resigned over Brexit and put the future of Prime Minister Theresa May in doubt. Meanwhile, investors continued to keep an eye on trade after the U.S. and China exchanged tariffs last week.
The Japanese market is extending gains from Friday following the positive cues from Wall Street and despite a stronger yen, buoyed by the move higher in the electric appliances, construction and mining sectors, while the pharmaceuticals led gains.
The Australian market is also rising as higher commodity prices lifted resources stocks. Greater China markets also got a boost in morning trade. China’s securities regulator said on Sunday it plans to ease restrictions on foreign investment in stock listed on the Shanghai or Shenzhen exchanges to attract more foreign capital and support the economy.
Sentiment in other markets was mostly positive after Friday’s U.S. payrolls report showed tame wages and more people looking for work.
In currency markets, the U.S. dollar was mostly softer following the jobs report, with sterling being an exception. The pound peeled off around a third of a U.S. cent to $1.3290 as news broke British Brexit Secretary David Davis and Brexit Minister Steven Baker had resigned. Against a basket of currencies the dollar had pulled back to 93.937, from a top of 94.486 on Friday. In commodity markets, oil prices pushed higher as the dollar eased.
Upcoming Events:
Monday, July 9th 2018
- 08:50 AM GMT – (GBP) MPC Member Broadbent Speaks
- 02:00 PM GMT – (EUR) ECB President Draghi Speaks
- 04:00 PM GMT – (EUR) ECB President Draghi Speaks
Tuesday, July 10th 2018
- 02:30 AM GMT – (AUD) NAB Business Confidence
- 02:30 AM GMT – (CNY) CPI y/y
- 09:30 AM GMT – (GBP) GDP m/m
- 09:30 AM GMT – (GBP) Manufacturing Production m/m
- 09:30 AM GMT – (GBP) Goods Trade Balance
- 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
- 01:30 PM GMT – (CAD) Building Permits m/m
Wednesday, July 11th 2018
- 08:00 AM GMT – (EUR) ECB President Draghi Speaks
- 01:30 PM GMT – (USD) Core PPI m/m
- 01:30 PM GMT – (USD) PPI m/m
- 03:00 PM GMT – (CAD) BOC Monetary Policy Report
- 03:00 PM GMT – (CAD) BOC Rate Statement
- 03:00 PM GMT – (CAD) Overnight Rate
- 03:30 PM GMT – (USD) Crude Oil Inventories
- 04:15 PM GMT – (CAD) BOC Press Conference
- 04:35 PM GMT – (GBP) BOE Gov Carney Speaks
- 05:30 PM GMT – (USD) FOMC Member Bostic Speaks
- 09:30 PM GMT – (USD) FOMC Member Williams Speaks
Thursday, July 12th 2018
- 09:30 AM GMT – (GBP) BOE Credit Conditions Survey
- 12:30 PM GMT – (EUR) ECB Monetary Policy Meeting Accounts
- 01:30 PM GMT – (CAD) NHPI m/m
- 01:30 PM GMT – (USD) CPI m/m
- 01:30 PM GMT – (USD) Core CPI m/m
- 01:30 PM GMT – (USD) Unemployment Claims
- 11:30 PM GMT – (NZD) Business NZ Manufacturing Index
Friday, July 13th 2018
- Tentative – (CNY) Trade Balance
- 08:15 AM GMT – (CHF) PPI m/m
- 12:00 PM GMT – (GBP) MPC Member Cunliffe Speaks
- 03:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
