Friday 20th November: Treasury- Fed spat hits the brakes on the market

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.42%, Shanghai Composite up 0.40%, Hang Seng up 0.27%, ASX down 0.12%
  • Commodities : Gold at $1865.75 (+0.23%), Silver at $24.18 (+0.55%), Brent Oil at $44.24 (+0.09%), WTI Oil at $41.89 (-0.02%)
  • Rates : US 10-year yield at 0.829, UK 10-year yield at 0.319, Germany 10-year yield at -0.580

News & Data:

  • (USD) CB Leading Index m/m 0.70% vs 0.70% expected
  • (USD) Unemployment Claims 742K vs 707K expected
  • (USD) Philly Fed Manufacturing Index 26.3 vs 22 expected
  • (CAD) ADP Non-Farm Employment Change -79.5K vs -564.4K previous

Markets Update:

Asian stock markets are mixed on Friday amid worries about rising coronavirus cases around the world and the economic impact of new lockdowns.

Investors also turned cautious following news the U.S. Treasury Department is looking to end some of the Federal Reserve emergency lending programs that were initiated earlier this year due to the coronavirus pandemic.

On the Chinese mainland, the Shanghai composite rose 0.4%, the Shenzhen composite was up 0.6% and the Shenzhen component added 0.3%. In Hong Kong, the Hang Seng index gained 0.3%. In Australia, the ASX 200 was lower by 0.1%, as most sectors struggled. The Nikkei 225 index in Japan fell 0.4% while the Topix index was up 0.1%. October’s core consumer prices raised deflation fears, as they fell at their fastest pace in a decade.

In currencies, the dollar index was last at 92.232, edging closer to Thursday’s low of 92.236. Oil prices retraced earlier losses on Friday during Asian hours. U.S. crude traded flat at $41.74 while global benchmark Brent rose 0.23% to $44.30.

Upcoming Events:

  • 07:00 AM GMT – (GBP) Retail Sales m/m
  • 08:15 AM GMT – (EUR) ECB President Lagarde Speaks
  • 01:30 PM GMT – (CAD) Core Retail Sales m/m
  • 01:30 PM GMT – (CAD) Retail Sales m/m