Monday 21st November 2022:Asian markets lower on Chinese covid spike

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.16%, Shanghai Composite down 0.39%, Hang Seng down 1.87%, ASX down 0.17%
  • Commodities : Gold at $1742.20 (-0.70%), Silver at $20.70 (-1.40%), Brent Oil at $86.97 (-0.74%), WTI Oil at $79.64 (-0.59%)
  • Rates : US 10-year yield at 3.838, UK 10-year yield at 3.290, Germany 10-year yield at 2.045

News & Data:

  • (USD) Existing Home Sales 4.43M vs 4.41M expected
  • (GBP) Retail Sales m/m 0.60% vs 0.50% expected

Markets Update:

Asian stocks fell broadly on Monday, as China battled a record number of COVID-19 cases and Russian officials in control of Europe’s largest nuclear site accused Kyiv of shelling the area. China has reported the death of three people after contracting COVID-19. It is the first COVID-related death that China’s mainland has reported since May. As Russia and Ukraine trade blame over the weekend’s shelling near the Zaporizhzhia nuclear power plant, the head of the U.N. nuclear watchdog has warned that whoever fired artillery at the plant was “playing with fire”.

China’s Shanghai Composite index dropped 0.39 percent to 3,085.04 after several cities in the country, including Beijing and Shanghai, imposed stringent restrictions to contain new COVID-19 outbreaks. Hong Kong’s Hang Seng index plummeted 2%, extending losses into a fourth straight session. South Korea’s KOSPI index fell 1.2%, while Australia’s S&P/ASX 200 index lost 0.1%. Japanese shares fluctuated before ending slightly higher after Warren Buffet’s Berkshire Hathaway raised its stake in the country’s five biggest trading houses.

Oil futures failed to find a floor after last week’s drubbing saw Brent lose 9% and WTI roughly 10%. Bond markets clearly think the Fed will tighten too far and tip the economy into recession as the yield curve is the most inverse it has been in 40 years. The Fed chorus has helped the dollar stabilise after its recent sharp sell-off, though speculative positioning in futures has turned net short on the currency for the first time since mid-2021.

Upcoming Events:

Tuesday, November 22, 2022   

  • 07:00 AM GMT – (AUD) RBA Gov Lowe Speaks
  • 01:30 PM GMT – (CAD) Core Retail Sales m/m
  • 01:30 PM GMT – (CAD) Retail Sales m/m
  • 03:00 PM GMT – (USD) Richmond Manufacturing Index
  • 04:00 PM GMT – (USD) FOMC Member Mester Speaks
  • 07:15 PM GMT – (USD) FOMC Member George Speaks
  • 07:45 PM GMT – (USD) FOMC Member Bullard Speaks

Wednesday, November 23, 2022   

  • 01:00 AM GMT – (NZD) Official Cash Rate
  • 01:00 AM GMT – (NZD) RBNZ Monetary Policy Statement
  • 01:00 AM GMT – (NZD) RBNZ Rate Statement
  • 02:00 AM GMT – (NZD) RBNZ Press Conference
  • 08:15 AM GMT – (EUR) French Flash Services PMI
  • 08:15 AM GMT – (EUR) French Flash Manufacturing PMI
  • 08:30 AM GMT – (EUR) German Flash Manufacturing PMI
  • 08:30 AM GMT – (EUR) German Flash Services PMI
  • 09:30 AM GMT – (GBP) Flash Manufacturing PMI
  • 09:30 AM GMT – (GBP) Flash Services PMI
  • 01:30 PM GMT – (USD) Core Durable Goods Orders m/m
  • 01:30 PM GMT – (USD) Durable Goods Orders m/m
  • 01:30 PM GMT – (USD) Unemployment Claims
  • 02:45 PM GMT – (USD) Flash Services PMI
  • 02:45 PM GMT – (USD) Flash Manufacturing PMI
  • 03:00 PM GMT – (USD) New Home Sales
  • 03:00 PM GMT – (USD) Revised UoM Consumer Sentiment
  • 07:00 PM GMT – (USD) FOMC Meeting Minutes

Thursday, November 24, 2022   

  • 09:00 AM GMT – (EUR) German ifo Business Climate
  • 09:45 PM GMT – (NZD) Retail Sales q/q