Monday 5th June – European Open Briefing

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Monday 5th June - European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei down 0.05 %, Shanghai Composite fell 0.50 %, Hang Seng declined 0.25 %, ASX 200 lost 0.80 %
  • Commodities: Gold at $1283 (+0.30 %), Silver at $17.57 (+0.25 %), WTI Oil at $48.35 (+1.50 %), Brent Oil at $50.70 (+1.45 %)
  • Rates: US 10-year yield at 2.16, UK 10-year yield at 1.04, German 10-year yield at 0.27

 

News & Data

  • Australia AIG Services Index 51.5 vs 53.0 previous
  • Australia Business Inventories m/m 1.2 % vs 0.5 % expected
  • Australia Company Gross Operating Profits 6.0 % vs 4.5 % expected
  • China Caixin Services PMI 52.8 vs 51.4 expected
  • Hong Kong Manufacturing PMI 50.5 vs 51.1 previous
  • World Bank says trade, manufacturing to boost 2017 global growth – RTRS
  • China services sector expands at fastest pace in four months in May: Caixin PMI – RTRS

 

CFTC Positioning Data:

  • EUR long 73K vs 65K long last week. Longs increased 8K.
  • GBP short 30K vs 24K short last week. Shorts increased by 6K
  • JPY short 52K vs 52K short last week. Unchanged.
  • CHF short 19K vs 20K short last week. Shorts trimmed by 1K
  • CAD short 98K vs 99K short.  Shorts trimmed by 1K.
  • AUD long 3K vs 3K long.  No change.
  • NZD short 5K vs 9K short last week.  Shorts trimmed 4K.

 

Markets Update:

The US Dollar regained some strength following Friday's losses due to the weak employment numbers. EUR/USD opened around 1.1280 in Asia and fell to a low of 1.1265, while GBP/USD declined from 1.2875 to 1.2855. Meanwhile, USD/JPY rose from 110.30 to 110.60 driven by the broad USD strength.

Oil prices rallied following news that several Gulf states have cut their diplomatic relations with Qatar. WTI rose from $47.65 to $48.40 overnight. Resistance is now seen at $49. Should it break above that level, a rally towards $50.50 seems likely.

 

Upcoming Events:

  • 08:45 BST – Italian Services PMI
  • 08:50 BST – French Services PMI
  • 08:55 BST – German Services PMI
  • 09:00 BST – Euro Zone Services PMI
  • 09:30 BST – UK Services PMI
  • 09:30 BST – Euro Zone Sentix Investor Confidence
  • 14:45 BST – US Services PMI
  • 15:00 BST – US Factory Orders
  • 15:00 BST – US ISM Non-Manufacturing PMI

 

The Week Ahead:

Tuesday, June 4th

  • 05:30 BST – RBA Rate Decision
  • 10:00 BST – Euro Zone Retail Sales
  • 15:00 BST – US JOLTs Job Openings
  • 15:00 BST – Canadian Ivey PMI

 

Wednesday, June 5th

  • 02:30 BST – Australian GDP
  • 07:00 BST – German Factory Orders
  • 08:30 BST – UK Halifax House Price Index
  • 09:00 BST – Italian Retail Sales
  • 10:00 BST – Euro Zone GDP
  • 15:30 BTS – US Crude Oil Inventories

 

Thursday, June 6th

  • 00:50 BST – Japanese Current Account
  • 00:50 BST – Japanese GDP
  • 02:30 BST – Australian Trade Balance
  • 02:30 BST – Australian Exports
  • 02:30 BST – Australian Imports
  • 03:45 BST – Chinese Trade Balance
  • 03:45 BST – Chinese Exports
  • 03:45 BST – Chinese Imports
  • 06:45 BST – Swiss Unemployment Rate
  • 07:00 BST – German Industrial Production
  • 07:15 BST – Swiss CPI
  • 12:45 BST – ECB Rate Decision
  • 13:30 BST – US Initial Jobless Claims

 

Friday, June 9th

  • 02:30 BST – Australian Home Loans
  • 02:30 BST – Chinese CPI
  • 07:00 BST – German Trade Balance
  • 07:45 BST – French Industrial Production
  • 09:30 BST – UK Manufacturing Production
  • 09:30 BST – UK Industrial Production
  • 13:30 BST – Canadian Employment Change
  • 13:30 BST – Canadian Unemployment Rate

 

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