Monday 17th January 2022 : China data not as bad as expected

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei up 0.73%, Shanghai Composite up 0.62%, Hang Seng down 1.00%, ASX up 0.32%
  • Commodities : Gold at $1819.20 (+0.15%), Silver at $23.00 (+0.37%), Brent Oil at $86.36 (+0.35%), WTI Oil at $83.69 (+0.47%)
  • Rates : US 10-year yield at 1.793, UK 10-year yield at 1.145, Germany 10-year yield at -0.040

News & Data:

  • (CNY) Retail Sales y/y 1.70% vs 3.80% expected
  • (CNY) GDP q/y 4.00% vs 3.30% expected
  • (USD) Prelim UoM Consumer Sentiment 68.8 vs 70 expected
  • (USD) Industrial Production m/m -0.10% vs 0.20% expected
  • (USD) Retail Sales m/m -1.90% vs 0.00% expected
  • (USD) Core Retail Sales m/m -2.30% vs 0.20% expected
  • China cuts rates on policy loans for first time since April 2020

Markets Update:

 Asian stock markets are trading mixed on Monday, following the mixed cues from Wall Street on Friday, on a spike in crude oil price and as traders focused on recent comments from Federal Reserve officials indicating interest rate hikes are coming as soon as March. Meanwhile, worries about the fast spreading coronavirus Omicron variant’s impact on global economic growth continues to impact market sentiment. 

The Australian stock market is slightly higher in choppy trading on Monday, boosted by gains in energy stocks amid a spike in crude oil prices. Materials and gold mining stocks were weak on a slump in iron ore and gold prices. The Japanese stock market is significantly higher on Monday, recouping the losses in the previous two sessions, with gains across most sectors as traders picked up stocks at a bargain after last week’s sell-off. Chinese shares rose Monday in a mixed trading session across the Asia-Pacific with the Shanghai composite adding 0.6% while the Shenzhen component gained 1.2%. Industrial production also rose and beat expectations, but retail sales had a more muted growth.

In the currency market, the U.S. dollar traded 0.07% higher at 95.234 against a basket of its peers, after last week climbing from levels near 94.87. Oil prices advanced on Monday during Asian trading hours, but cut back on some of the earlier gains.

Upcoming Events:

Monday, January 17, 2022   

  • 03:30 PM GMT – (CAD) BOC Business Outlook Survey

Tuesday, January 18, 2022   

  • Tentative – (JPY) BOJ Outlook Report
  • Tentative – (JPY) Monetary Policy Statement
  • Tentative – (JPY) BOJ Press Conference
  • 10:00 AM GMT – (EUR) ZEW Economic Sentiment
  • 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
  • 01:30 PM GMT – (USD) Empire State Manufacturing Index

Wednesday, January 19, 2022   

  • 07:00 AM GMT – (GBP) CPI y/y
  • 01:30 PM GMT – (CAD) CPI m/m
  • 01:30 PM GMT – (CAD) Common CPI y/y
  • 01:30 PM GMT – (CAD) Median CPI y/y
  • 01:30 PM GMT – (CAD) Trimmed CPI y/y
  • 02:15 PM GMT – (GBP) BOE Gov Bailey Speaks

Thursday, January 20, 2022   

  • 12:30 AM GMT – (AUD) Employment Change
  • 12:30 AM GMT – (AUD) Unemployment Rate
  • 01:30 PM GMT – (USD) Philly Fed Manufacturing Index
  • 01:30 PM GMT – (USD) Unemployment Claims
  • 03:00 PM GMT – (USD) Existing Home Sales
  • 04:00 PM GMT – (USD) Crude Oil Inventories

Friday, January 21, 2022   

  • 07:00 AM GMT – (GBP) Retail Sales m/m
  • 01:30 PM GMT – (CAD) Core Retail Sales m/m
  • 01:30 PM GMT – (CAD) Retail Sales m/m