Monday 29th July: Asian stocks lower despite positive US cues

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Monday 29th July: Asian stocks lower despite positive US cues 1

Global Markets:

  • Asian Stock Markets : Nikkei down 0.38%, Shanghai Composite down 0.15%, Hang Seng down 1.52%, ASX up 0.48%
  • Commodities : Gold at $1417.85 (-0.10%), Silver at $16.38 (-0.09%), Brent Oil at $63.06 (-0.49%), WTI Oil at $56.03 (-0.30%)
  • Rates : US 10-year yield at 2.070, UK 10-year yield at 0.685, Germany 10-year yield at -0.381

News & Data:

  • (USD) Advance GDP q/q 2.10% vs 1.80% expected
  • (USD) Advance GDP Price Index q/q 2.40% vs 4.00% expected
  • PBoC Fixes USDCNY Ref Rate At 6.8821 (prev fix 6.8796 close 6.8800)
  • S., China move trade talks to Shanghai amid deal pessimism

CFTC Positioning Data:

  • EUR short 39K vs 31K short last week. Shorts increased by 8K
  • GBP short 79K vs 76K short last week. Shorts increased by 3K
  • JPY short 9K vs 11K short last week. Short trimmed by 2K
  • CHF short 13k vs 12k short last week. Shorts increased by 1K
  • AUD short 48 k vs 53k short last week. Shorts trimmed by 5K
  • NZD short 12K vs 17K short last week. Shorts trimmed by 5K
  • CAD long 31K vs 21K long last week. Longs increased by 10K

Markets Update:

Asian stock markets are mostly lower on Monday despite the positive cues from Wall Street Friday following upbeat corporate earnings results and better-than-expected U.S. GDP data. Investors turned cautious ahead of the U.S-China trade talks set to resume this week and the U.S. Federal Reserve’s monetary policy announcement due on Wednesday.

The Nikkei 225 in Japan declined 0.4% in afternoon trade, as index heavyweight and robot maker Fanuc’s stock fell 1.3%. The Topix also shed 0.3%. In mainland China, the Shanghai composite shed earlier gains to slip 0.1% by the afternoon, while the Shenzhen component and Shenzhen composite were just below the flatline.

Hong Kong’s Hang Seng index dropped 1.5%, as tensions remain high in the city following another clash between protestors and the police over the weekend. Australia’s S&P/ASX 200, on the other hand, rose 0.5% as most of the sectors traded higher.

The dollar hit a two-month peak on a basket of currencies at 98.010, and was last trading at 97.921. The dollar had got a helping hand from White House economic adviser Larry Kudlow who on Friday said the Trump administration had “ruled out” intervening to push it lower. Sterling was pinned near 27-month lows around $1.2375 amid reports the government of Prime Minister Boris Johnson was preparing the ground for a “no-deal” Brexit.

Upcoming Events:

Tuesday, July 30, 2019

  • 02:30 AM GMT – (AUD) Building Approvals m/m
  • Tentative – (JPY) BOJ Outlook Report
  • Tentative – (JPY) Monetary Policy Statement
  • Tentative – (JPY) BOJ Press Conference
  • All Day – (EUR) German Prelim CPI m/m
  • 01:30 PM GMT – (USD) Core PCE Price Index m/m
  • 01:30 PM GMT – (USD) Personal Spending m/m
  • 03:00 PM GMT – (USD) CB Consumer Confidence

Wednesday, July 31, 2019

  • 02:00 AM GMT – (CNY) Manufacturing PMI
  • 02:00 AM GMT – (CNY) Non-Manufacturing PMI
  • 02:00 AM GMT – (NZD) ANZ Business Confidence
  • 02:30 AM GMT – (AUD) CPI q/q
  • 02:30 AM GMT – (AUD) Trimmed Mean CPI q/q
  • 08:00 AM GMT – (EUR) Spanish Flash GDP q/q
  • 10:00 AM GMT – (EUR) CPI Flash Estimate y/y
  • 10:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
  • 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
  • 01:30 PM GMT – (CAD) GDP m/m
  • 01:30 PM GMT – (CAD) RMPI m/m
  • 01:30 PM GMT – (USD) Employment Cost Index q/q
  • 02:45 PM GMT – (USD) Chicago PMI
  • 07:00 PM GMT – (USD) FOMC Statement
  • 07:00 PM GMT – (USD) Federal Funds Rate
  • 07:30 PM GMT – (USD) FOMC Press Conference

Thursday, August 01, 2019

  • 02:45 AM GMT – (CNY) Caixin Manufacturing PMI
  • 09:30 AM GMT – (GBP) Manufacturing PMI
  • 12:00 PM GMT – (GBP) BOE Inflation Report
  • 12:00 PM GMT – (GBP) MPC Official Bank Rate Votes
  • 12:00 PM GMT – (GBP) Monetary Policy Summary
  • 12:00 PM GMT – (GBP) Official Bank Rate
  • 12:00 PM GMT – (GBP) Asset Purchase Facility
  • 12:00 PM GMT – (GBP) MPC Asset Purchase Facility Votes
  • 12:30 PM GMT – (GBP) BOE Gov Carney Speaks
  • 03:00 PM GMT – (USD) ISM Manufacturing PMI

Friday, August 02, 2019

  • 02:30 AM GMT – (AUD) Retail Sales m/m
  • 01:30 PM GMT – (CAD) Trade Balance
  • 01:30 PM GMT – (USD) Average Hourly Earnings m/m
  • 01:30 PM GMT – (USD) Non-Farm Employment Change
  • 01:30 PM GMT – (USD) Unemployment Rate
  • 03:00 PM GMT – (USD) Revised UoM Consumer Sentiment
  • &more…

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