Monday 25th January: Asian markets mostly higher, Fed announcements on Wednesday

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.67%, Shanghai Composite up 0.48%, Hang Seng up 2.36%, ASX up 0.36%
  • Commodities : Gold at $1850.85 (-0.29%), Silver at $25.59 (+0.13%), Brent Oil at $55.50 (+0.45%), WTI Oil at $52.59 (+0.61%)
  • Rates : US 10-year yield at 1.098, UK 10-year yield at 0.308, Germany 10-year yield at -0.514

News & Data:

  • (USD) Flash Manufacturing PMI 59.1 vs 56.6 expected
  • (CAD) Retail Sales m/m 1.30% vs 0.00% expected
  • (CAD) Core Retail Sales m/m 2.10% vs 0.30% expected
  • EU should punish Putin for Navalny arrest by cutting money flows: Germany’s Weber
  • Australia wants its ‘mutually beneficial’ relationship with China to improve, Treasurer Frydenberg says

CFTC Positioning Data:

  • EUR long 163K vs 156K long last week. Long increased by 7K
  • GBP long 14K vs 13K long last week. Longs increased by 1K
  • JPY long 50K vs 50K long last week. Unchanged
  • CHF long 9K vs 12K long last week. Longs increased by 3K
  • AUD long 5K vs 5K long last week. Unchanged
  • NZD long 16K vs 15K long last week. Longs increased by 3K
  • CAD long 10K vs 12K long last week. Longs trimmed by 2K.

Markets Update:

Asian stock markets are mostly higher on Monday despite the mixed cues from Wall Street Friday. Optimism about the prospects for additional stimulus in the U.S. as well as upbeat corporate earnings results helped offset worries about the rising number of coronavirus cases around the world.

The Shanghai composite was 0.5% higher while the Shenzhen component advanced 0.9%. Hong Kong’s Hang Seng index also saw robust gains as it rose about 1.9%. In Japan, the Nikkei 225 nudged 0.4% higher while the Topix index gained 0.1%. Shares in Australia edged higher, with the S&P/ASX 200 up 0.4%.

In currencies, major pairs were trapped in a tight range as markets awaited the Fed’s Wednesday meeting. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.136 after seeing a recent decline from levels above 90.6.

Upcoming Events:

Monday, January 25, 2021

  • 03:45 AM GMT – (EUR) ECB President Lagarde Speaks
  • 11:15 AM GMT – (EUR) ECB President Lagarde Speaks

Tuesday, January 26, 2021

  • 10:00 AM GMT – (USD) CB Consumer Confidence
  • 07:30 PM GMT – (AUD) CPI q/q
  • 07:30 PM GMT – (AUD) Trimmed Mean CPI q/q

Wednesday, January 27, 2021

  • 02:00 PM GMT – (USD) FOMC Statement
  • 02:00 PM GMT – (USD) Federal Funds Rate
  • 02:30 PM GMT – (USD) FOMC Press Conference

Thursday, January 28, 2021

  • 08:30 AM GMT – (USD) Advance GDP q/q
  • 08:30 AM GMT – (USD) Advance GDP Price Index q/q
  • 08:30 AM GMT – (USD) Unemployment Claims
  • 10:00 AM GMT – (USD) CB Leading Index m/m

Friday, January 29, 2021

  • 03:00 AM GMT – (CHF) KOF Economic Barometer
  • 08:30 AM GMT – (CAD) GDP m/m

Saturday, January 30, 2021

  • 08:00 PM GMT – (CNY) Manufacturing PMI