Friday 23rd August: Markets look forward to Powell’s comments today

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.40%, Shanghai Composite up 0.42%, Hang Seng up 0.43%, ASX up 0.33%
  • Commodities : Gold at $1503.85 (-0.31%), Silver at $16.97 (-0.39%), Brent Oil at $60.24 (+0.53%), WTI Oil at $55.56 (+0.38%)
  • Rates : US 10-year yield at 1.649, UK 10-year yield at 0.515, Germany 10-year yield at -0.627

News & Data:

  • (NZD) Core Retail Sales q/q 0.30% vs 0.20% expected
  • (NZD) Retail Sales q/q 0.20% vs 0.10% expected
  • (USD) Flash Manufacturing PMI 49.9 vs 50.5 expected
  • (EUR) Flash Services PMI 53.4 vs 53 expected
  • (EUR) Flash Manufacturing PMI 47 vs 46.3 expected
  • (EUR) German Flash Services PMI 54.4 vs 54.1 expected
  • (EUR) German Flash Manufacturing PMI 43.6 vs 43.1 expected
  • (EUR) French Flash Manufacturing PMI 51 vs 49.5 expected
  • (EUR) French Flash Services PMI 53.3 vs 52.5 expected
  • Korea Says It Will End Intel-Sharing Deal With Japan, Adding to Tensions
  • China: State-aluminium producer misses coupon payment on US Dollar bond

Markets Update:

Asian stock markets are mostly lower on Friday following the mixed cues overnight from Wall Street. Investors are cautious as they looked ahead to U.S. Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium later today for additional clues about the outlook for interest rates.

In Japan, the Nikkei 225 rose 0.4% while the Topix index added 0.3%. South Korea’s Kospi wavered between gains and losses to trade fractionally lower. Tensions between the two countries escalated on Thursday after Seoul said it was cancelling an intelligence-sharing pact with Tokyo amid a bitter trade dispute.

Mainland Chinese shares traded mostly higher: the Shanghai composite gained 0.4%, the Shenzhen composite gained 0.1%. Hong Kong’s Hang Seng index climbed 0.4% while Australia’s ASX 200 went up 0.3%.

Oil prices weakened overnight, with both Brent crude and U.S. West Texas Intermediate down 0.6% each, on worries about the global economy. China’s yuan extended losses, threatening to stoke trade tensions between Washington and Beijing. The greenback slipped on Thursday, but moved within narrow ranges. In early Asian trading, the dollar was up 0.1% against a basket of major currencies to 98.293.

Upcoming Events:

  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
  • 12:30 PM GMT – (CAD) Retail Sales m/m
  • 02:00 PM GMT – (USD) Fed Chair Powell Speaks
  • Day 2 – (All) Jackson Hole Symposium
  • &more…

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