Monday 14th January: Asian markets in the red as China disappoints

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Monday 14th January: Asian markets in the red as China disappoints 1

Global Markets:

  • Asian Stock Markets : Nikkei up 0.97%, Shanghai Composite down 0.73%, Hang Seng down 1.51%, ASX down 0.02%
  • Commodities : Gold at $1291.05 (+0.12%), Silver at $15.60 (-0.34%), Brent Oil at $59.69 (-1.31%), WTI Oil at $50.89 (-1.36%)
  • Rates : US 10-year yield at 2.699, UK 10-year yield at 1.287, Germany 10-year yield at 0.180

News & Data:

  • (CNY) Trade Balance 395B vs 345B expected
  • (AUD) MI Inflation Gauge m/m 0.40% vs 0.00% previous
  • (USD) Core CPI m/m 0.20% vs 0.20% expected
  • (USD) CPI m/m -0.10% vs -0.10% expected
  • (GBP) Manufacturing Production m/m -0.30% vs 0.40% expected
  • (GBP) GDP m/m 0.20% vs 0.10% expected
  • (AUD) Retail Sales m/m 0.40% vs 0.30% expected

Markets Update:

Asian stock markets are mostly lower on Monday following the weak cues from Wall Street Friday amid worries about the ongoing U.S. government shutdown and global economic growth. Investors also turned cautious as they await China’s trade data for December due later in the day. The Japanese market is closed for a public holiday.

Chinese government data showed that December exports and imports fell unexpectedly, deepening concerns of a slowdown in the world’s second-largest economy as Beijing’s trade war with the U.S. appeared to be taking a toll. China’s trade surplus with the U.S. — closely watched amid a bitter trade war between Washington and Beijing — grew 17 percent from a year ago.

The Shanghai composite and the Shenzhen component index both fell by 0.7 percent. Hong Kong’s Hang Seng Index was down 1.5 percent while the Kospi declined nearly 0.5 percent as tech names in the country declined. Australia’s benchmark ASX 200 reversed early gains to trade flat as the energy sector declined 0.8 percent.

In currencies, the euro was subdued as it hit key technical levels following data from Italy on Friday that showed the euro zone’s third-largest economy was at risk of recession. In commodities, oil prices extended losses from Friday as investors worried about a global slowdown. Gold gained to inch towards a recent seven-month high of $1,298.42 an ounce.

Upcoming Events:

Monday, January 14, 2019

  • 10:00 PM GMT – (NZD) NZIER Business Confidence

Tuesday, January 15, 2019

  • 02:30 PM GMT – (USD) PPI m/m
  • 02:30 PM GMT – (USD) Core PPI m/m
  • 04:00 PM GMT – (EUR) ECB President Draghi Speaks
  • Tentative – (GBP) Parliament Brexit Vote
  • 07:00 PM GMT – (USD) FOMC Member George Speaks

Wednesday, January 16, 2019

  • 12:30 AM GMT – (AUD) Westpac Consumer Sentiment
  • 10:15 AM GMT – (GBP) BOE Gov Carney Speaks
  • 10:30 AM GMT – (GBP) CPI y/y
  • 10:30 AM GMT – (GBP) PPI Input m/m
  • 10:30 AM GMT – (GBP) RPI y/y

Thursday, January 17, 2019

  • Day 1 GMT – (All) G20 Meetings
  • 04:20 AM GMT – (JPY) BOJ Gov Kuroda Speaks
  • 10:30 AM GMT – (GBP) BOE Credit Conditions Survey
  • 02:30 PM GMT – (USD) Philly Fed Manufacturing Index
  • 04:45 PM GMT – (USD) FOMC Member Quarles Speaks

Friday, January 18, 2019

  • Day 2 GMT – (All) G20 Meetings
  • 10:30 AM GMT – (GBP) Retail Sales m/m
  • 02:30 PM GMT – (CAD) CPI m/m
  • 02:30 PM GMT – (CAD) Common CPI y/y
  • 02:30 PM GMT – (CAD) Median CPI y/y
  • 02:30 PM GMT – (CAD) Trimmed CPI y/y
  • 03:05 PM GMT – (USD) FOMC Member Williams Speaks
  • 04:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
  • &more…

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