Monday 14th September: Markets cautiously optimistic as Oxford vaccine resumes trials.

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.65%, Shanghai Composite up 0.57%, Hang Seng up 0.46%, ASX up 0.68%
  • Commodities : Gold at $1952.55 (+0.24%), Silver at $27.04 (+0.67%), Brent Oil at $39.61 (-0.55%), WTI Oil at $37.14 (-0.51%)
  • Rates : US 10-year yield at 0.667, UK 10-year yield at 0.169, Germany 10-year yield at -0.499

News & Data:

  • (USD) Core CPI m/m 0.40% vs 0.20% expected
  • (USD) CPI m/m 0.40% vs 0.30% expected
  • K. Job Cuts Set to Double Last Recession Peak In Coming Months
  • Japan’s Chief Cabinet Sec Suga Wins The Ruling Party Leadership Race

CFTC Positioning Data:

  • EUR long 198K vs 197K long last week. Longs increased by 1K
  • GBP long 13K vs 6k long last week. Longs increased by 7K
  • JPY long 22K vs 30K long last week. Longs decreased by 8K
  • CHF long 12K vs 12K long last week. No change in net speculative position
  • AUD short 2K vs square last week. Shorts increased by 2K
  • NZD long 5K vs 7K long last week. Longs decreased by 2K
  • CAD short 17k vs 27K short last week. Shorts trimmed by 10K.

Markets Update:

Asian stock markets are advancing on Monday despite the mixed cues from Wall Street Friday, as positive news on the coronavirus vaccine front boosted sentiment. Drug maker AstraZeneca said it has resumed the late-stage trial of its coronavirus vaccine candidate in the UK after the trial was suspended last week following an adverse reaction in a trial participant.

Mainland Chinese stocks were higher by their close, with the Shanghai composite up 0.6% while the Shenzhen component also added 0.6%. Australia’s S&P/ASX 200 edged about 0.7%. In Japan, the Nikkei 225 rose 0.7% while the Topix index added 0.9%. Hong Kong’s Hang Seng index rose 0.5%, as of its final hour of trading.

Major currencies were treading water on Monday. The dollar was a tad weaker against the yen at 106.06 though still a long distance from its low this year of 101.2. The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 93.194 after bouncing from levels around 92.7 last week.

Upcoming Events:

Tuesday, September 15, 2020

  • 01:30 AM GMT – (AUD) Monetary Policy Meeting Minutes
  • 06:00 AM GMT – (GBP) Claimant Count Change

Wednesday, September 16, 2020

  • 06:00 AM GMT – (GBP) CPI y/y
  • 12:30 PM GMT – (USD) Core Retail Sales m/m
  • 12:30 PM GMT – (USD) Retail Sales m/m
  • 02:30 PM GMT – (USD) Crude Oil Inventories
  • 06:00 PM GMT – (USD) FOMC Economic Projections
  • 06:00 PM GMT – (USD) FOMC Statement
  • 06:00 PM GMT – (USD) Federal Funds Rate
  • 06:30 PM GMT – (USD) FOMC Press Conference
  • 10:45 PM GMT – (NZD) GDP q/q

Thursday, September 17, 2020

  • 01:30 AM GMT – (AUD) Employment Change
  • 01:30 AM GMT – (AUD) Unemployment Rate
  • Tentative – (JPY) Monetary Policy Statement
  • Tentative – (JPY) BOJ Press Conference
  • 11:00 AM GMT – (GBP) MPC Official Bank Rate Votes
  • 11:00 AM GMT – (GBP) Monetary Policy Summary
  • 11:00 AM GMT – (GBP) Official Bank Rate
  • 11:00 AM GMT – (GBP) MPC Asset Purchase Facility Votes
  • 12:30 PM GMT – (CAD) ADP Non-Farm Employment Change
  • 12:30 PM GMT – (USD) Philly Fed Manufacturing Index
  • 12:30 PM GMT – (USD) Unemployment Claims

Friday, September 18, 2020

  • 06:00 AM GMT – (GBP) Retail Sales m/m
  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
  • 02:00 PM GMT – (USD) CB Leading Index m/m
  • 02:00 PM GMT – (USD) Prelim UoM Consumer Sentiment