Monday 19th July 2021: Asian markets lower on virus woes

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.25%, Shanghai Composite down 0.01%, Hang Seng down 2.23%, ASX down 0.85%
  • Commodities : Gold at $1802.85 (-0.67%), Silver at $25.42 (-1.45%), Brent Oil at $72.25 (-1.82%), WTI Oil at $70.25 (-1.83%)
  • Rates : US 10-year yield at 1.272, UK 10-year yield at 0.619, Germany 10-year yield at -0.363

News & Data:

  • (USD) Prelim UoM Consumer Sentiment 80.8 vs 86.5 expected
  • (USD) Retail Sales m/m 0.60% vs -0.40% expected
  • (USD) Core Retail Sales m/m 1.30% vs 0.40% expected

Markets Update:

Asian stock markets are trading mostly lower on Monday, following the broadly negative cues from Wall Street on Friday on mixed retail sales data and an unexpected slump in US consumer sentiment in July amid concerns about inflation. Traders are also spooked by the spread of the delta variant of the coronavirus across the world, which is expected to slow the pace of the global economic recovery from the pandemic.

Japanese stock market is sharply lower on Monday, extending the losses of the previous three sessions, with the Nikkei 225 losing more than 400 points to slip below the 27,600 level.

The Australian stock market is significantly lower on Monday, after a slight loss in the previous session, with the benchmark S&P/ASX 200 moving below 7,300 level. In Hong Kong, the Hang Seng index slipped 1.7%, as of its final hour of trading. Mainland Chinese stocks closed mixed, with the Shanghai composite little changed while the Shenzhen component rose 0.1%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.822 following a recent climb from below 92.4. Crude oil futures settled slightly higher Friday, moving up after two days of sharp losses but ending with a sharp weekly loss. Also, OPEC+ agreed on a deal to increase crude output over the weekend, putting further pressure on prices.

Upcoming Events:

Monday, July 19, 2021

  • 10:00 AM GMT – (GBP) MPC Member Haskel Speaks

Tuesday, July 20, 2021

  • 01:30 AM GMT – (AUD) Monetary Policy Meeting Minutes

Wednesday, July 21, 2021

  • 01:30 AM GMT – (AUD) Retail Sales m/m
  • 02:30 PM GMT – (USD) Crude Oil Inventories

Thursday, July 22, 2021

  • 11:45 AM GMT – (EUR) Monetary Policy Statement
  • 11:45 AM GMT – (EUR) Main Refinancing Rate
  • 12:30 PM GMT – (EUR) ECB Press Conference
  • 12:30 PM GMT – (USD) Unemployment Claims

Friday, July 23, 2021

  • 06:00 AM GMT – (GBP) Retail Sales m/m
  • 07:15 AM GMT – (EUR) French Flash Manufacturing PMI
  • 07:15 AM GMT – (EUR) French Flash Services PMI
  • 07:30 AM GMT – (EUR) German Flash Manufacturing PMI
  • 07:30 AM GMT – (EUR) German Flash Services PMI
  • 08:00 AM GMT – (EUR) Flash Manufacturing PMI
  • 08:00 AM GMT – (EUR) Flash Services PMI
  • 08:30 AM GMT – (GBP) Flash Manufacturing PMI
  • 08:30 AM GMT – (GBP) Flash Services PMI
  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
  • 12:30 PM GMT – (CAD) Retail Sales m/m
  • 01:45 PM GMT – (USD) Flash Manufacturing PMI
  • 01:45 PM GMT – (USD) Flash Services PMI