Monday 19th October: Asian markets higher following Chinese GDP jump.

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Global Markets:

·       Asian Stock Markets : Nikkei up 1.11%, Shanghai Composite down 0.71%, Hang Seng up 0.52%, ASX up 0.85%

·       Commodities : Gold at $1913.80 (+0.39%), Silver at $24.76 (+1.45%), Brent Oil at $42.98 (+0.12%), WTI Oil at $41.20 (+0.19%)

·       Rates : US 10-year yield at 0.771, UK 10-year yield at 0.189, Germany 10-year yield at -0.621

News & Data:

·       (CNY) GDP q/y 4.90% vs 5.50% expected

·       (USD) Prelim UoM Consumer Sentiment 81.2 vs 80.2 expected

·       (USD) Retail Sales m/m 1.90% vs 0.70% expected

·       (USD) Core Retail Sales m/m 1.50% vs 0.40% expected

·       Japan PM Suga: Opposes Any Steps To Heighten Tension In South China Sea

·       Bank of England boss: Best to ‘act aggressively’

Markets Update:

Asian stock markets are mostly higher on Monday despite the mixed cues from Wall Street Friday. Data showing that China’s economy continued to recover from the impact of the coronavirus pandemic and optimism about a U.S. stimulus package before the presidential elections in November boosted investor sentiment.

The Nikkei 225 rose 1.1% while the Topix index added 1.3%. Hong Kong’s Hang Seng index rose 0.5%, with shares of HSBC listed in the city gaining more than 2.5%.

Mainland Chinese stocks were lower on the day, with the Shanghai composite down 0.7% while the Shenzhen component shed 0.8%. Meanwhile, shares in Australia rose on the day, with the S&P/ASX 200 up 0.8%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 93.725 after touching levels around 93.9 in recent days. Oil prices were higher in the afternoon of Asian trading hours, with international benchmark Brent crude futures up 0.1% to $42.98 per barrel.

Upcoming Events:

Monday, October 19, 2020

·       12:00 PM GMT – (USD) Fed Chair Powell Speaks

·       12:45 PM GMT – (EUR) ECB President Lagarde Speaks

·       02:30 PM GMT – (CAD) BOC Business Outlook Survey

·       11:00 PM GMT – (AUD) RBA Assist Gov Kent Speaks

Tuesday, October 20, 2020

·       12:30 AM GMT – (AUD) Monetary Policy Meeting Minutes

Wednesday, October 21, 2020

·       06:00 AM GMT – (GBP) CPI y/y

·       12:10 PM GMT – (GBP) MPC Member Ramsden Speaks

·       12:30 PM GMT – (CAD) CPI m/m

·       12:30 PM GMT – (CAD) Core Retail Sales m/m

·       12:30 PM GMT – (CAD) Retail Sales m/m

Thursday, October 22, 2020

·       09:25 AM GMT – (GBP) BOE Gov Bailey Speaks

·       12:30 PM GMT – (USD) Unemployment Claims

·       02:00 PM GMT – (USD) CB Leading Index m/m

·       09:45 PM GMT – (NZD) CPI q/q

Friday, October 23, 2020

·       07:15 AM GMT – (EUR) French Flash Services PMI

·       07:15 AM GMT – (EUR) French Flash Manufacturing 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

·       01:45 PM GMT – (USD) Flash Manufacturing PMI

·       02:00 PM GMT – (GBP) MPC Member Ramsden Speaks