Friday 31st July: Asian markets mixed as sentiment turns

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Global Markets:

  • Asian Stock Markets : Nikkei down 2.82%, Shanghai Composite up 0.71%, Hang Seng down 0.16%, ASX down 2.04%
  • Commodities : Gold at $1972.00 (+1.53%), Silver at $24.24 (+3.76%), Brent Oil at $43.70 (+1.04%), WTI Oil at $40.36 (+1.10%)
  • Rates : US 10-year yield at 0.540, UK 10-year yield at 0.084, Germany 10-year yield at -0.546

News & Data:

  • (CNY) Non-Manufacturing PMI 54.2 vs 54.5 expected
  • (CNY) Manufacturing PMI 51.1 vs 50.8 expected
  • (USD) Unemployment Claims 1434K vs 1440K expected
  • (USD) Advance GDP Price Index q/q -1.80% vs 0.00% expected
  • (USD) Advance GDP q/q -32.90% vs -34.50% expected
  • (EUR) German Prelim GDP q/q -10.10% vs -9.00% expected
  • (CHF) KOF Economic Barometer 85.7 vs 72.5 expected

Markets Update:

Asian stock markets are mixed on Friday as investors digested data showing a record contraction in U.S. economic activity in the second quarter and an increase in U.S. jobless claims. Meanwhile, better-than-expected quarterly earnings results from tech giants such as Apple, Amazon, Alphabet and Facebook as well as data showing that China’s factory activity continued to expand in July helped ease worries about a global economic recovery.

Mainland Chinese stocks were higher on the day, with the Shanghai composite up 0.7%while the Shenzhen component gained 1.3%. Japanese stocks led losses among Asia’s major markets, with the Nikkei 225 down 2.8%. Shares in Australia also saw sizable losses with the S&P/ASX 200 falling 2.0%. Meanwhile, the Hang Seng index in Hong Kong slipped 0.2%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 92.552 after declining from levels above 93.8 earlier in the trading week. Crude oil futures settled lower on Thursday as worries about the energy demand outlook resurfaced after data showed a sharp contraction in U.S. GDP and an uptick in unemployment claims and amid a continued surge in coronavirus cases across the world.

Upcoming Events:

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