Global Markets:
- Asian Stock Markets : Nikkei up 1.88%, Shanghai Composite up 0.80%, Hang Seng up 0.67%, ASX up 0.15%
- Commodities : Gold at $1507.15 (-0.26%), Silver at $18.03 (-0.19%), Brent Oil at $62.34 (+0.34%), WTI Oil at $56.66 (+0.21%)
- Rates : US 10-year yield at 1.805, UK 10-year yield at 0.712, Germany 10-year yield at -0.352
News & Data:
- (AUD) Cash Rate 0.75% vs 0.75% expected
- (CNY) Caixin Services PMI 51.1 vs 51.5 expected
- (AUD) Retail Sales m/m 0.20% vs 0.40% expected
- BoJ’s Kuroda: More issuance of super-long bonds may be meaningful, effect of fiscal policy higher amid yield curve control
- China central bank cuts medium-term loan rate for first time since 2016 as growth cools
Markets Update:
Asian stock markets are mostly higher with modest gains on Tuesday following the record closing highs overnight on Wall Street amid growing optimism about a U.S.-China trade deal. The Financial Times reported that the U.S. is considering dropping tariffs on $112 billion of Chinese imports. The Japanese market, which resumed trading after a holiday on Monday, is notably higher.
The Australian market pared initial gains and is trading flat as investors turned cautious ahead of the Reserve Bank of Australia’s monetary policy decision due later in the day. The RBA is widely expected to leave its benchmark lending rate unchanged at the record low of 0.75 percent. Shares in Japan led the region following a return from a Monday holiday.
The Nikkei 225 surged around 1.9% as shares of index heavyweight Softbank Group soared more than 2.5%, while the Topix index jumped 1.7%. Both indexes were poised to close at their highest for 2019. Mainland Chinese stocks were higher by the afternoon, with the Shanghai composite up 0.8% and Shenzhen composite gaining 0.7%.
Bonds are losing some of their appeal and the yield on benchmark 10-year notes rose back to 1.799% compared to last week’s low of 1.670%. In the currency market, the dollar gained to 108.60 yen, extending its recovery from 107.89 touched on Friday.
Oil prices ticked lower in Asia but stayed not far from their highest levels since late September, buoyed by an improved outlook for crude demand as better-than-expected U.S. jobs growth added to market hopes a preliminary U.S.-China trade deal would be reached this month.
Upcoming Events:
- 09:30 AM GMT – (GBP) Services PMI
- 01:30 PM GMT – (CAD) Trade Balance
- 03:00 PM GMT – (USD) ISM Non-Manufacturing PMI
- 09:45 PM GMT – (NZD) Employment Change q/q
- 09:45 PM GMT – (NZD) Unemployment Rate
- &more…