Monday 3rd August: Asian markets lower as sentiments sour

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Global Markets:

  • Asian Stock Markets : Nikkei up 2.24%, Shanghai Composite up 1.75%, Hang Seng down 0.94%, ASX down 0.03%
  • Commodities : Gold at $1978.00 (+0.21%), Silver at $24.44 (+0.93%), Brent Oil at $42.99 (-1.22%), WTI Oil at $39.67 (-1.49%)
  • Rates : US 10-year yield at 0.538, UK 10-year yield at 0.108, Germany 10-year yield at -0.524

News & Data:

  • (USD) Revised UoM Consumer Sentiment 72.5 vs 72.9 expected
  • (USD) Chicago PMI 51.9 vs 44 expected
  • (USD) Personal Spending m/m 5.60% vs 5.30% expected
  • (USD) Core PCE Price Index m/m 0.20% vs 0.20% expected
  • (CAD) GDP m/m 4.50% vs 3.50% expected

CFTC Positioning Data:

  • EUR long 157K vs 125K long last week. Longs increased by 32K
  • GBP short 25K vs 15K short last week. Shorts increased by 10K
  • JPY long 29K vs 19K long last week. Longs increased by 10K
  • CHF long 8K vs 7K long last week. Longs increase by 1K
  • AUD short 5K vs 0K long last week. Shorts increased by 5K
  • NZD short 1K vs 2K last week. NZD switches from long to short. 3K change
  • CAD short 13k vs 17K short last week. Shorts trimmed by 4K.

Markets Update:

Asian stock markets are mostly lower on Monday despite the positive cues from Wall Street on upbeat tech earnings results. Lingering worries about the relentless surge in coronavirus cases across the world and rising U.S.-China tensions weighed on the markets. A private survey showing that the manufacturing sector in China continued to expand at a faster rate in July failed to boost sentiment.

Mainland Chinese stocks were higher on the day, with the Shanghai composite up 1.8% and the Shenzhen component rising 2.4%. In Japan, the Nikkei 225 jumped 2.2%, while the Topix index advanced 1.8%. The Hang Seng index in Hong Kong shed about 1%, as of its final hour of trading. The S&P/ASX 200 ended its trading day slightly below the flatline

Oil prices eased on concerns about oversupply as OPEC and its allies, together known as OPEC+, are due to pull back from production cuts in August while an increase in COVID-19 cases worldwide raised fears of slower pick-up in fuel demand

Upcoming Events:

Monday, August 03, 2020

  • 02:00 PM GMT – (USD) ISM Manufacturing PMI

Tuesday, August 04, 2020

  • 01:30 AM GMT – (AUD) Trade Balance
  • 04:30 AM GMT – (AUD) Cash Rate
  • 04:30 AM GMT – (AUD) RBA Rate Statement
  • 10:45 PM GMT – (NZD) Employment Change q/q
  • 10:45 PM GMT – (NZD) Unemployment Rate

Wednesday, August 05, 2020

  • 12:00 PM GMT – (JPY) BOJ Gov Kuroda Speaks
  • 12:15 PM GMT – (USD) ADP Non-Farm Employment Change
  • 02:00 PM GMT – (USD) ISM Non-Manufacturing PMI
  • 02:30 PM GMT – (USD) Crude Oil Inventories

Thursday, August 06, 2020

  • 03:00 AM GMT – (NZD) Inflation Expectations q/q
  • 11:00 AM GMT – (GBP) BOE Monetary Policy Report
  • 11:00 AM GMT – (GBP) MPC Official Bank Rate Votes
  • 11:00 AM GMT – (GBP) Monetary Policy Summary
  • 11:00 AM GMT – (GBP) Official Bank Rate
  • 11:00 AM GMT – (GBP) MPC Asset Purchase Facility Votes
  • 11:30 AM GMT – (GBP) BOE Gov Bailey Speaks
  • 12:30 PM GMT – (USD) Unemployment Claims

Friday, August 07, 2020

  • 01:30 AM GMT – (AUD) RBA Monetary Policy Statement
  • 01:45 AM GMT – (AUD) RBA Assist Gov Ellis Speaks
  • Tentative – (CNY) Trade Balance
  • Tentative – (CNY) USD-Denominated Trade Balance
  • 12:30 PM GMT – (CAD) Employment Change
  • 12:30 PM GMT – (CAD) Unemployment Rate
  • 12:30 PM GMT – (USD) Average Hourly Earnings m/m
  • 12:30 PM GMT – (USD) Non-Farm Employment Change
  • 12:30 PM GMT – (USD) Unemployment Rate