Global Markets:
- Asian Stock Markets : Nikkei up 0.06%, Shanghai Composite down 0.34%, Hang Seng up 0.35%, ASX up 5.83%
- Commodities : Gold at $1485.50 (-0.07%), Silver at $12.71 (-0.85%), Brent Oil at $30.98 (+3.09%), WTI Oil at $30.41 (+4.86%)
- Rates : US 10-year yield at 0.802, UK 10-year yield at 0.421, Germany 10-year yield at -0.423
News & Data:
- (AUD) HPI q/q 3.90% vs 4.50% expected
- (USD) Empire State Manufacturing Index -21.5 vs 5.1 expected
- President Trump says US “may be” heading into a recession
- Bridgewater Makes $14 Billion Short Against European Stocks
- US House Virus-Relief Bill Goes to Senate After Delays Over Fixes
Markets Update:
Asian stock markets are mostly lower on Tuesday in volatile trading following another sell-off overnight on Wall Street amid escalating concerns about the economic impact of the coronavirus pandemic. Despite recent stimulus measures announced by global central banks, investors fear that the impact of the COVID-19 outbreak would still be heavy and push the global economy into a recession.
The Australian market is surging despite the overnight sell-off on Wall Street, as investors went bargain hunting. However, trading remained volatile due to lingering uncertainty about the impact of the coronavirus pandemic. Among the major miners, BHP is higher by almost 7 percent, while Rio Tinto and Fortescue Metals are rising more than 3 percent each.
Meanwhile, shares in mainland China ended their trading day lower. The Shanghai composite slipped 0.3%. Hong Kong’s Hang Seng index advanced 0.4%. Japanese markets on the other hand were largely flat, on a day of volatile trading elsewhere. The Bank of Japan’s measures announced yesterday to double targets for annual purchases of exchange-traded funds to JPY12 trillion and keep interest rates unchanged.
The liquidity anxiety has hammered higher yielding risk-sensitive currencies, such as the Australian dollar, while those with negative yields, such as the yen, the euro and the Swiss franc, have largely escaped the markets carnage. U.S. benchmark oil futures fell $3.03 to settle at $28.70 a barrel, near a 4-year low. The British pound is also under pressure, dogged by worries about not only Britain’s exit from the European Union but also its sizable current account deficit.
Upcoming Events:
- 09:30 AM GMT – (GBP) Average Earnings Index 3m/y
- 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
- 12:30 PM GMT – (CAD) Manufacturing Sales m/m
- 12:30 PM GMT – (USD) Core Retail Sales m/m
- 12:30 PM GMT – (USD) Retail Sales m/m