Monday 11th January: Asian markets lower as investors turn cautious

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Global Markets:

  • Asian Stock Markets : Shanghai Composite down 1.08%, Hang Seng up 0.11%, ASX down 0.90%
  • Commodities : Gold at $1846.80 (+0.62%), Silver at $24.94 (+1.21%), Brent Oil at $55.27 (-1.29%), WTI Oil at $51.80 (-0.84%)
  • Rates : US 10-year yield at 1.107, UK 10-year yield at 0.285, Germany 10-year yield at -0.534

News & Data:

  • (USD) Unemployment Rate 6.70% vs 6.80% expected
  • (USD) Non-Farm Employment Change -140K vs 60K expected
  • (USD) Average Hourly Earnings m/m 0.80% vs 0.20% expected
  • (CAD) Unemployment Rate 8.60% vs 8.70% expected
  • (CAD) Employment Change -62.6K vs -32.5K expected

CFTC Positioning Data:

  • EUR long 143K vs 143K long last week. Long position unchanged
  • GBP long 4K vs 5K long last week. Longs trimmed by 1K
  • JPY long 50K vs 47K long last week. Longs increased by 3K
  • CHF long 9K vs 12K long last week. Longs trimmed by 3K
  • AUD short 4K vs 7K short last week. Shorts trimmed by 3K
  • NZD long 12K vs 13K long last week. Longs trimmed by 1K
  • CAD long 14k vs 15K long last week. Longs trimmed by 1K.

Markets Update:

Asian stock markets are mostly lower on Monday despite the positive cues from Wall Street Friday.

Investors turned cautious following news about growing calls for U.S. President Donald Trump’s removal from office and as they looked ahead to the first batch of quarterly earnings results from major companies due later this week. The Japanese market is closed for a holiday.

The Australian market is declining after two straight days of gains. Worries about the rising coronavirus cases in New South Wales, which recorded four new local COVID-19 cases on Sunday, also weighed on the market. Mainland Chinese stocks dipped: The Shanghai composite declined 1.1% while the Shenzhen component shed 1.6%. Hong Kong’s Hang Seng index advanced 0.1%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.425 after a recent rise from levels below 89.4.  Oil prices ran into profit taking after reaching their highest in nearly a year on Friday, gaining 8% on the week after Saudi Arabia pledged to cut output.

Upcoming Events:

Monday, January 11, 2021

  • 08:00 PM GMT – (CAD) BOC Business Outlook Survey

Tuesday, January 12, 2021

  • 03:30 PM GMT – (GBP) MPC Member Broadbent Speaks

Wednesday, January 13, 2021

  • 02:30 PM GMT – (EUR) ECB President Lagarde Speaks
  • 07:00 PM GMT – (USD) CPI m/m
  • 07:00 PM GMT – (USD) Core CPI m/m

Thursday, January 14, 2021

  • 07:00 PM GMT – (USD) Unemployment Claims
  • 11:00 PM GMT – (USD) Fed Chair Powell Speaks

Friday, January 15, 2021

  • 07:00 PM GMT – (USD) Core Retail Sales m/m
  • 07:00 PM GMT – (USD) Retail Sales m/m