Global Markets:
- Asian Stock Markets : Nikkei down 0.72%, Shanghai Composite down 0.34%, Hang Seng up 0.20%, ASX down 0.12%
- Commodities: Gold at $1416.35 (+0.20%), Silver at $15.40 (+0.24%), Brent Oil at $66.60 (+0.18%), WTI Oil at $59.60 (+0.03%)
- Rates : US 10-year yield at 2.092, UK 10-year yield at 0.803, Germany 10-year yield at -0.300
News & Data:
- (NZD) CPI q/q 0.60% vs 0.60% expected
- (USD) Empire State Manufacturing Index 4.3 vs 1.6 expected
- (CHF) PPI m/m -0.50% vs 0.10% expected
- AUD Steady, RBA Minutes Show Labor Market Still Key Policy Metric
- RBNZ Sectoral Factor Model Inflation for Q2 remains unchanged at 1.7% YoY
Markets Update:
Asian shares were little changed and mixed in quiet trading Tuesday amid a lack of fresh market-moving news as investors looked ahead to earnings season and Wall Street again closed at record highs.
Major Asian equity indicators nudged higher on Monday as investors awaited U.S. retail sales data and corporate earnings to gauge the health of the world’s biggest economy, with markets remaining focused on a likely U.S. rate cut this month.
Japan’s Nikkei falls 0.72% a day after holiday. Hong Kong’s edged up 0.2%, while Australia’s ASX 200 is about flat at 0.12%. Shanghai Composite slipped 0.3% after broad pressure across global business and investment from Sino-U.S. trade frictions and slowing world growth reinforced expectations of policy easing by major central banks, in spite of encouraging Chinese economic data on Monday that had provided some relief to investors worried about the economic outlook.
On Tuesday, the yield on benchmark 10-year Treasury notes turned down slightly to 2.092% compared with its U.S. close of 2.092% on Monday. Oil prices found some support after earlier easing on signs that the impact of a tropical storm on U.S. Gulf Coast production would be short-lived; with the Brent crude gaining 0.18% while the WTI gained 0.03%.
The dollar inched up to 107.94 Japanese yen from 107.81 late Monday. The prospect of a Federal Reserve interest rate cut this month continues to keep the dollar on the defensive. Trade in gold echoed the cautious tone of equity markets ahead of U.S. data. The precious metal was last down 0.2% on the spot market at $1,416.35 per ounce.
Upcoming Events:
- 9:15 AM GMT – (USD) Capacity Utilization Rate
- 9:15 AM GMT – (USD) Industrial Production m/m
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- Tentative – (NZD) GDT Price Index
- 1:00 PM GMT – (USD) Fed Chair Powell Speaks
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- 8:30 PM GMT – (AUD) MI Leading Index m/m
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