Friday 30th July 2021: HK markets end the week 5% lower as China cracks the whip on edtech

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.80%, Shanghai Composite down 0.42%, Hang Seng down 1.28%, ASX down 0.33%
  • Commodities : Gold at $1828.10 (-0.17%), Silver at $25.67 (-0.44%), Brent Oil at $74.92 (-0.24%), WTI Oil at $73.44 (-0.24%)
  • Rates : US 10-year yield at 1.251, UK 10-year yield at 0.572, Germany 10-year yield at -0.445

News & Data:

  • (EUR) German Prelim GDP q/q 1.50% vs 2.00% expected
  • (USD) Pending Home Sales m/m -1.90% vs 0.10% expected
  • (USD) Advance GDP Price Index q/q 6.00% vs 5.40% expected
  • (USD) Unemployment Claims 400K vs 382K expected
  • (USD) Advance GDP q/q 6.50% vs 8.50% expected

Markets Update:

Asian stock markets are trading mostly lower on Friday, ignoring the broadly positive cues overnight from Wall Street as traders continue to be worried about the alarming spread of the highly contagious coronavirus variants in the region as it will impact the pace of the global economy recovery from the pandemic.

The Japanese stock market is sharply lower, giving up all the gains in the previous session, with the benchmark Nikkei 225 just above the 27,400 level. The government on Friday proposed states of emergency in three prefectures near Olympic host city Tokyo as well as Osaka Prefecture through August 31 as COVID-19 cases spike to records around the country. Australian stock market is slightly lower after treading in the green early in the day. A week of volatile trading in Chinese markets has left Hong Kong’s Hang Seng index 5% lower. Mainland-listed stocks were also subdued.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 91.911, dropping from levels above 92 the day before.

Upcoming Events:

  • 12:30 PM GMT – (CAD) GDP m/m
  • 12:30 PM GMT – (USD) Core PCE Price Index m/m
  • 01:45 PM GMT – (USD) Chicago PMI
  • 02:00 PM GMT – (USD) Revised UoM Consumer Sentiment