Monday 26th April 2021: COVID in Japan threatens recovery.

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei up 0.36%, Shanghai Composite down 0.95%, Hang Seng down 0.40%, ASX down 0.21%
  • Commodities : Gold at $1780.80 (+0.17%), Silver at $26.18 (+0.39%), Brent Oil at $64.36 (-1.62%), WTI Oil at $61.15 (-1.59%)
  • Rates : US 10-year yield at 1.579, UK 10-year yield at 0.756, Germany 10-year yield at -0.254

News & Data:

  • (EUR) German ifo Business Climate 96.8 vs 97.8 expected
  • (USD) Flash Manufacturing PMI 60.6 vs 60.9 expected
  • (GBP) Flash Services PMI 60.1 vs 58.9 expected
  • (GBP) Flash Manufacturing PMI 60.7 vs 59 expected
  • (EUR) Flash Services PMI 50.3 vs 49.1 expected
  • (EUR) Flash Manufacturing PMI 63.3 vs 62 expected

CFTC Positioning Data:

  • EUR long 81K vs 67K long last week. Longs increased by at 14 K
  • GBP long 25K vs 26K long last week. Longs decrease by 1K
  • JPY short 60K vs 58K short last week. Shorts increased by 2K
  • CHF short 2K vs 1K long last week. Shorts increased by 3K
  • AUD short 2K vs 4K long last week. Shorts increased by 6K.
  • NZD long 4K vs 3K long last week. Longs increased by 1K
  • CAD long 13K vs 2K long last week. Longs increased by 11K.

Markets Update:

Asian stocks ended mixed on Monday as investors kept a wary eye on the Covid-19 surge in Japan and India, and awaited cues from key central bank meetings. Chinese and Hong Kong shares fell amid fears that further tightening of credit conditions would drag on growth.

Mainland Chinese stocks closed lower, with the Shanghai composite down 0.9% and the Shenzhen component slipping 0.9%. Hong Kong’s Hang Seng index slid about 0.4%, as of its final hour of trading. Over in Australia, the S&P/ASX 200 closed 0.2%.The Nikkei 225 in Japan gained 0.4% while the Topix index rose 0.2%. South Korea’s Kospi advanced 1%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.819 following a recent drop from above 91.2. The 10-year Treasury yield continued to remain below the 1.6% mark on Monday.

Investors remain focused on the Fed decision, however, which is widely expected to reiterate that the central bank is not looking to withdraw its unprecedented COVID-19 support anytime soon even as signs of economic recovery from the virus emerge.

Upcoming Events:

Tuesday, April 27, 2021

  • Tentative GMT – (JPY) BOJ Outlook Report
  • Tentative – (JPY) Monetary Policy Statement
  • Tentative – (JPY) BOJ Press Conference
  • 02:00 PM GMT – (USD) CB Consumer Confidence
  • 08:00 PM GMT – (CAD) BOC Gov Macklem Speaks

Wednesday, April 28, 2021

  • 01:30 AM GMT – (AUD) CPI q/q
  • 01:30 AM GMT – (AUD) Trimmed Mean CPI q/q
  • Tentative – (All) OPEC-JMMC Meetings
  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
  • 12:30 PM GMT – (CAD) Retail Sales m/m
  • 02:00 PM GMT – (EUR) ECB President Lagarde Speaks
  • 02:30 PM GMT – (USD) Crude Oil Inventories
  • 06:00 PM GMT – (USD) FOMC Statement
  • 06:00 PM GMT – (USD) Federal Funds Rate
  • 06:30 PM GMT – (USD) FOMC Press Conference

Thursday, April 29, 2021

  • 12:30 PM GMT – (USD) Advance GDP q/q
  • 12:30 PM GMT – (USD) Advance GDP Price Index q/q
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 02:00 PM GMT – (USD) Pending Home Sales m/m

Friday, April 30, 2021

  • 01:00 AM GMT – (CNY) Manufacturing PMI
  • 08:00 AM GMT – (CHF) SNB Chairman Jordan Speaks
  • 08:00 AM GMT – (EUR) German Prelim GDP q/q
  • 12:30 PM GMT – (CAD) GDP m/m