Friday 16th July 2021: APAC markets end the week mostly in red

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.98%, Shanghai Composite down 0.72%, Hang Seng up 0.26%, ASX up 0.17%
  • Commodities : Gold at $1824.25 (-0.26%), Silver at $26.30 (-0.38%), Brent Oil at $73.09 (-0.52%), WTI Oil at $71.30 (-0.49%)
  • Rates : US 10-year yield at 1.319, UK 10-year yield at 0.665, Germany 10-year yield at -0.342

News & Data:

  • (NZD) CPI q/q 1.30% vs 0.70% expectedx
  • (USD) Industrial Production m/m 0.40% vs 0.60% expected
  • (USD) Unemployment Claims 360K vs 350K expected
  • (USD) Philly Fed Manufacturing Index 21.9 vs 28.1 expected

Markets Update:

Asian stock markets are trading mostly lower on Friday, following the negative cues overnight from Wall Street on sinking crude oil prices, renewed Covid-19 concerns and rising tensions between China and the U.S. Traders are also worried about the global economy as some central banks around the world are considering tightening monetary policy much sooner than the US Federal Reserve.

The Japanese stock market is significantly lower on Friday, extending the losses of the previous two sessions, with the benchmark Nikkei 225 just breaking below the 28,000 mark, following the negative cues overnight from Wall Street, as traders are spooked by the spike in the fresh wave of COVID-19 infections. They also await the Bank of Japan’s monetary policy decision due later today. Australian stock market is slightly lower on Friday, extending the losses in the previous session, with the benchmark S&P/ASX 200 staying above the 7,300 level as financial and mining stocks are taking a beating.

The benchmark 10-year U.S. Treasury yield is set for a third weekly retreat and on the data front, the 360,000 initial jobless claims were filed for the week. Oil prices were heading for their biggest weekly drop since at least May as expectations of more supplies spooked investors, with OPEC likely to add output to meet a potential revival in demand as more countries recover from the pandemic.

Upcoming Events:

  • 12:30 PM GMT – (USD) Core Retail Sales m/m
  • 12:30 PM GMT – (USD) Retail Sales m/m
  • 02:00 PM GMT – (USD) Prelim UoM Consumer Sentiment