Global Markets:
- Asian Stock Markets : Nikkei down 0.20%, ASX up 1.95%
- Commodities : Gold at $1318.55 (-0.06%), Silver at $15.91 (+0.16%), Brent Oil at $62.77 (+0.42%), WTI Oil at $54.84 (+0.51%)
- Rates : US 10-year yield at 2.718, UK 10-year yield at 1.277, Germany 10-year yield at 0.174
News & Data:
- (AUD) Cash Rate 1.50% vs 1.50% expected
- (AUD) Trade Balance 3.68B vs 2.25B expected
- (AUD) Retail Sales m/m -0.40% vs 0.00% expected
- BOJ Governor Kuroda: Wage data issue doesn’t affect view on economy
- Australia Keeps Rates on Hold Despite Pressure from Property Slump
Markets Update:
Asian stock markets are mixed on Tuesday in holiday-thinned trade despite the positive cues overnight from Wall Street on positive sentiment generated by last Friday’s U.S. jobs data for January. Several markets in Asia are closed for the Lunar New Year holidays. Among the markets that are open for trading, the Australian and New Zealand markets are higher, while the Japanese market drifted lower.
The Australian market is notably higher, led by the major banks, following the positive cues overnight from Wall Street and on relief that the financial services’ Kenneth Haynes royal commission report did not recommend anticipated harsh measures on banks. Investors were calmed by the RBA keeping its cash rate unchanged at 1.5 percent. Japan’s Nikkei average was trading lower on the day but at its highest level in seven weeks – it opened higher following the positive cues overnight from Wall Street and on a weaker yen.
The dollar was on a firm footing as investors continued to lap-up Friday’s strong payrolls number and a manufacturing survey. The dollar’s index against six major currencies was little changed at 95.833, having gained 0.27 percent on Monday. On Monday, sterling quickly erased brief gains following a newspaper report that goods shipped to Britain from the European Union could be waved through without checks in the event of a “no-deal” Brexit. In commodity markets, oil prices inched up, buoyed by expectations of tightening global supply amid U.S. sanctions on Venezuela and production cuts led by OPEC.
Upcoming Events:
- 10:30 AM GMT – (GBP) Services PMI
- 04:00 PM GMT – (USD) ISM Non-Manufacturing PMI
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