20th June 2022 Monday: Markets continue to trade lower as central banks in hawkish chorus

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 Global Markets:

  • Asian Stock Markets : Nikkei down 0.74%, Shanghai Composite down 0.04%, Hang Seng up 0.36%, ASX down 0.64%
  • Commodities : Gold at $1841.65 (+0.06%), Silver at $21.57 (-0.09%), Brent Oil at $113.06 (-0.05%), WTI Oil at $108.14 (+0.14%)
  • Rates : US 10-year yield at 3.231, UK 10-year yield at 2.530, Germany 10-year yield at 1.671

News & Data:

  • (EUR) German PPI m/m 1.60% vs 1.50% expected
  • (GBP) Rightmove HPI m/m 0.30% vs 2.10% previous
  • (NZD) BusinessNZ Services Index 55.2 vs 52.2 previous
  • (USD) CB Leading Index m/m -0.40% vs -0.40% expected
  • (USD) Industrial Production m/m 0.20% vs 0.40% expected
  • (USD) Capacity Utilization Rate 79.00% vs 79.20% expected

Markets Update:

Asian stock markets are trading mostly lower on Monday, following the mixed cues from Wall Street on Friday, dragged by materials and energy stocks amid tumbling crude oil prices, Traders also remain concerned that aggressive monetary tightening by major central banks to cool inflation could lead to a slowdown in global growth. Meanwhile, U.S. President Joe Biden stated that a U.S. recession isn’t inevitable and that the country was “in a stronger position than any nation in the world to overcome inflation.”

The Japanese stock market is sharply lower on Monday with the Nikkei 225 staying above the 25,600 level, with materials, technology and energy stocks leading the declines, even as traders continue to be worried about the economic impact of aggressive monetary policy tightening. The Shanghai Composite in mainland China closed mildly lower. Hong Kong’s Hang Seng index climbed 0.4%, , with shares of life insurer AIA gaining 1.4%. The Australian stock market is modestly lower in choppy trading, with weakness across most sectors, particularly technology and energy stocks amid tumbling crude oil prices.

Crude oil prices fell sharply Friday on mounting fears about a possible global economic recession following severe tightening of policies by several central banks. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 104.373 after a recent bounce from levels below 104. Bitcoin slipped 3% to $19,897, having bounced sharply over the weekend amid talk of a single large buyer. The strength in the dollar has kept gold in a tight sideways pattern for the past month or so and it was last stuck at $1,841 an ounce.

Upcoming Events:

Monday, June 20, 2022   

  • 01:00 PM GMT – (EUR) ECB President Lagarde Speaks
  • 03:00 PM GMT – (EUR) ECB President Lagarde Speaks
  • 04:45 PM GMT – (USD) FOMC Member Bullard Speaks

Tuesday, June 21, 2022   

  • 12:00 AM GMT – (AUD) RBA Gov Lowe Speaks
  • 01:30 AM GMT – (AUD) Monetary Policy Meeting Minutes
  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
  • 12:30 PM GMT – (CAD) Retail Sales m/m
  • 02:00 PM GMT – (USD) Existing Home Sales

Wednesday, June 22, 2022   

  • 06:00 AM GMT – (GBP) CPI y/y
  • 12:30 PM GMT – (CAD) CPI m/m
  • 12:30 PM GMT – (CAD) Common CPI y/y
  • 12:30 PM GMT – (CAD) Median CPI y/y
  • 12:30 PM GMT – (CAD) Trimmed CPI y/y
  • 01:30 PM GMT – (USD) Fed Chair Powell Testifies

Thursday, June 23, 2022   

  • 07:15 AM GMT – (EUR) French Flash Services PMI
  • 07:30 AM GMT – (EUR) German Flash Manufacturing PMI
  • 07:30 AM GMT – (EUR) German Flash Services PMI
  • 08:30 AM GMT – (GBP) Flash Manufacturing PMI
  • 08:30 AM GMT – (GBP) Flash Services PMI
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 01:45 PM GMT – (USD) Flash Manufacturing PMI
  • 01:45 PM GMT – (USD) Flash Services PMI
  • 02:00 PM GMT – (USD) Fed Chair Powell Testifies

Friday, June 24, 2022   

  • 06:00 AM GMT – (GBP) Retail Sales m/m
  • 08:00 AM GMT – (EUR) German ifo Business Climate
  • 11:30 AM GMT – (AUD) RBA Gov Lowe Speaks
  • 11:30 AM GMT – (USD) FOMC Member Bullard Speaks
  • 02:00 PM GMT – (USD) Revised UoM Consumer Sentiment