23rd May 2022 Monday: Asian markets mixed with a tinge of green

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.96%, Shanghai Composite up 0.01%, Hang Seng down 1.15%, ASX up 0.05%
  • Commodities : Gold at $1852.26 (+0.55%), Silver at $21.93 (+1.19%), Brent Oil at $110.72 (+0.66%), WTI Oil at $110.97 (+0.63%)
  • Rates : US 10-year yield at 2.832, UK 10-year yield at 1.880, Germany 10-year yield at 0.959

News & Data:

  • (GBP) Rightmove HPI m/m 2.10% vs 1.60% previous
  • (EUR) Consumer Confidence -21 vs -22 expected
  • (GBP) Retail Sales m/m 1.40% vs -0.30% expected
  • (EUR) German PPI m/m 2.80% vs 1.20% expected

Markets Update:

Asian stock markets are trading mixed on Monday, following the lack of major cues from Wall Street on Friday, as the proposed relaxation of COVID-19 lockdowns in China and China’s latest measure to bolster its economy injected a note of optimism. Meanwhile, concerns remain about growth outlook against a backdrop of persistent inflation, looming interest rate hikes and the Ukraine war.

The Japanese stock market is modestly higher on Monday, extending the gains in the previous session, with the Nikkei 225 staying below the 26,900 level, as traders welcome the potential relaxation of border controls after scrapping COVID-19 tests for arrivals and some easing of mask guidelines.

Greater China markets dropped, with Hong Kong’s Hang Seng index falling 1.2% and the Hang Seng Tech index sliding 2.5%. The Shanghai Composite traded flat and the Shenzhen Component declined 0.3%. The Australian stock market is modestly higher, with gains in materials and energy stocks amid higher Iron ore and crude oil prices. The markets are also reacting positively to the results of the Federal elections on Saturday.

Crude oil futures settled higher on Friday, lifted by the proposed ban on Russian oil by the EU and the relaxation of Covid lockdowns in China. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 102.688, lower compared to the levels above 103 seen last week.

Upcoming Events:

Monday, May 23, 2022   

  • 08:00 AM GMT – (EUR) German ifo Business Climate
  • 02:15 PM GMT – (GBP) BOE Gov Bailey Speaks

Tuesday, May 24, 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
  • 01:45 PM GMT – (USD) Flash Manufacturing PMI
  • 01:45 PM GMT – (USD) Flash Services PMI
  • 04:20 PM GMT – (USD) Fed Chair Powell Speaks
  • 06:00 PM GMT – (EUR) ECB President Lagarde Speaks

Wednesday, May 25, 2022   

  • 02:00 AM GMT – (NZD) Official Cash Rate
  • 02:00 AM GMT – (NZD) RBNZ Monetary Policy Statement
  • 02:00 AM GMT – (NZD) RBNZ Rate Statement
  • 03:00 AM GMT – (NZD) RBNZ Press Conference
  • 08:00 AM GMT – (EUR) ECB President Lagarde Speaks
  • Tentative – (EUR) ECB Financial Stability Review
  • 11:05 AM GMT – (JPY) BOJ Gov Kuroda Speaks
  • 12:30 PM GMT – (USD) Core Durable Goods Orders m/m
  • 12:30 PM GMT – (USD) Durable Goods Orders m/m
  • 06:00 PM GMT – (USD) FOMC Meeting Minutes

Thursday, May 26, 2022   

  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
  • 12:30 PM GMT – (CAD) Retail Sales m/m
  • 12:30 PM GMT – (USD) Prelim GDP q/q
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 02:00 PM GMT – (USD) Pending Home Sales m/m

Friday, May 27, 2022   

  • 11:35 AM GMT – (USD) FOMC Member Bullard Speaks
  • 12:30 PM GMT – (USD) Core PCE Price Index m/m
  • 02:00 PM GMT – (USD) Revised UoM Consumer Sentiment