Friday 16th September: European Open Briefing

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Global Markets:

  • Asian stock markets: Nikkei up 0.40 %, ASX gained 1.10 %, Shanghai Composite and Hang closed for holiday
  • Commodities: Gold at $1317 (-0.05 %), Silver at $19.03 (-0.05 %), WTI Oil at $43.65 (-0.60 %), Brent Oil at $46.35 (-0.55 %)
  • Rates: US 10 year yield at 1.69, UK 10 year yield at 0.90, German 10 year yield at 0.03

News & Data:

  • New Zealand ANZ Consumer Confidence (Sep): 121.0 (prev 117.7)
  • New Zealand ANZ Job Ads (MoM) Aug: 3.1% (prev 1.4%)
  • Japan’s Central Bank Splits Over Easing Program — WSJ
  • Asia stocks up as weak data crimp Fed hike chances – RTRS
  • Japan finance minister says to coordinate with Bank of Japan to beat deflation – RTRS

Markets Update:

The US Dollar came under some pressure overnight following yesterday's mixed US economic data. While initial jobless claims and the Philadelphia Fed Manufacturing Index beat expectations, retail sales, PPI, industrial and manufacturing production data arrived lower than expected.

The USD fell the most against the commodity currencies. AUD/USD rallied from 0.7445 to 0.7510 following the weak data releases, and extended gains to 0.7526 overnight. Similar price action was seen in NZD/USD, which rose to a high of 0.7330 in Asia.

EUR/USD volatility remains low. It had a brief spike to 1.1280 in yesterday's NY session, but quickly retraced the move. In Asia, EUR/USD settled in a 1.1235-50 range. GBP/USD traded 1.3220-48.

Volatility has been lower throughout this week and decreased even further overnight, as Chinese, HK, Malaysian, Korean and Taiwanese markets were closed for a holiday. It could remain quiet in Europe, as there are no major data releases, but we should see some increased volatility around the US CPI release at 13:30 BST.

Upcoming Events:

  • 09:00 BST – Italian Trade Balance
  • 13:30 BST – US CPI
  • 15:00 BST – US Michigan Consumer Sentiment

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