Friday 12th August: European Open Briefing

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Friday 12th August: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei rallied 1.20 %, Shanghai Composite gained 0.25 %, Hang Seng rose 0.70 %, ASX up 0.10 %
  • Commodities: Gold at $1343 (-0.50 %), Silver at $19.95 (-0.40 %), WTI Oil at $43.90 (+0.95 %), Brent Oil at $46.35 (+0.65 %)
  • Rates: US 10 year yield at 1.55, UK 10 year yield at 0.54, German 10 year yield at -0.09

News & Data:

  • China Industrial Production (YoY) Jul: 6.0% (exp 6.2% prev 6.2%)
  • China Industrial Production (YtD YoY) Jul: 6.0% (exp 6.0% prev 6.0%)
  • China Retail Sales (YoY) Jul: 10.2% (exp 10.5% prev 10.6%)
  • China Retail Sales (YtD YoY) Jul: 10.3% (exp 10.3% prev 10.3%)
  • New Zealand Retail Sales Ex-Inflation (QoQ) Q2: 2.3% (exp 1.0% prev 0.8%)
  • PBoC Fixes Yuan Reference Rate at 6.6543 (prev 6.6255)
  • Fed's Williams: Still think we should raise rates this year; sees inflation near target in next year or two
  • Mexican Central bank leave rates unchanged at 4.25%
  • WTI crude futures settle at $43.49, a rise of 4.27% ($1.78)
  • S&P500, Dow and Nasdaq Comp all finish at record highs
  • US Banks Said to Ask Fed for 5 Years to Comply with Volcker Rule — RTRS

Markets Update:

Chinese econ data missed expectations, with both industrial production and retail sales numbers arriving lower than anticipated. Asian stock markets are up nevertheless, led by gains in the Nikkei.

USD/JPY rallied overnight as Japanese markets reopened after a one-day break. The pair gained 0.20 % and traded as high as 102.20. USD/JPY already caught a bid during the NY session, supported by gains in US equity markets, which rose to a new all-time high.

Flows in the other major pairs were rather light. EUR/USD traded in a 1.1130-45 range, while GBP/USD consolidated between 1.2950 and 1.2975. NZD/USD was a tad more volatile as retail sales data out of New Zealand beat expectations. The pair briefly rallied from 0.7195 to 0.7230, but eventually gave up gains and fell back to 0.7190. AUD/USD followed a similar path and fell from 0.77 in the early Asian session to a low of 0.7670.

Upcoming Events:

  • 07:00 BST – German GDP
  • 07:00 BST – German CPI
  • 08:00 BST – Spanish CPI
  • 09:00 BST – Italian GDP
  • 10:00 BST – Euro Zone GDP
  • 10:00 BST – Euro Zone Industrial Production
  • 13:30 BST – US Retail Sales
  • 13:30 BST – US PPI
  • 15:00 BST – US Michigan Consumer Sentiment
  • 20:30 BST – CFTC Positioning Report

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