Friday 16th August: Asian stocks mixed as China announces plans to help economy.

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei up 0.14%, Shanghai Composite up 0.62%, Hang Seng up 0.83%, ASX down 0.04%
  • Commodities: Gold at $1528.60 (-0.17%), Silver at $17.19 (-0.15%), Brent Oil at $58.94 (+1.22%), WTI Oil at $55.23 (+1.40%)
  • Rates : US 10-year yield at 1.549, UK 10-year yield at 0.408, Germany 10-year yield at -0.699

News & Data:

  • (CAD) ADP Non-Farm Employment Change 73.7K vs -9.6K previous
  • (USD) Unemployment Claims 220K vs 212K expected
  • (USD) Prelim Unit Labor Costs q/q 2.40% vs 1.70% expected
  • (USD) Prelim Nonfarm Productivity q/q 2.30% vs 1.40% expected
  • (USD) Empire State Manufacturing Index 4.8 vs 2.1 expected
  • (USD) Retail Sales m/m 0.70% vs 0.30% expected
  • (USD) Philly Fed Manufacturing Index 16.8 vs 10.1 expected
  • (USD) Core Retail Sales m/m 1.00% vs 0.40% expected
  • (GBP) Retail Sales m/m 0.20% vs -0.30% expected
  • (CHF) PPI m/m -0.10% vs -0.20% expected
  • (JPY) Revised Industrial Production m/m -3.30% vs -3.60% expected
  • (AUD) Unemployment Rate 5.20% vs 5.20% expected
  • (AUD) Employment Change 41.1K vs 14.2K expected
  • (AUD) MI Inflation Expectations 3.50% vs 3.20% previous
  • (USD) Capacity Utilization Rate 77.50% vs 77.80% expected
  • (USD) Industrial Production m/m -0.20% vs 0.10% expected
  • (USD) Business Inventories m/m 0.00% vs 0.10% expected
  • (USD) NAHB Housing Market Index 66 vs 66 expected
  • (USD) Natural Gas Storage 49B vs 60B expected
  • (USD) TIC Long-Term Purchases 99.1B vs 22.9B expected
  • (NZD) Business NZ Manufacturing Index 48.2 vs 51.1 previous
  • BOJ Cuts Purchases Of 5-10 Year Bonds For The First Time Since December

Markets Update:

Asian shares found some footing on Friday after a turbulent week as China hinted at more support for its economy, amid growing expectations of aggressive stimulus from all the major central banks. Sentiment got a lift when China’s state planner said Beijing would roll out a plan to boost disposable income, though details were lacking.

China also threatened to retaliate if the Trump administration goes ahead with its latest tariff threats, yet still held out hopes for a trade deal. China’s central bank set the daily midpoint for the yuan at 7.0312 per U.S. dollar, the seventh consecutive session it’s been set weaker than the 7 level.

Asian markets are mixed in morning trade on Friday. Japan’s Nikkei recouped early losses and was last flat to be 0.14% firmer, while Australia’s ASX is flat at 0.04% lower. Shanghai Composite rose 0.62% even as the Sino-U.S. trade dispute remained a drag after Beijing on Thursday vowed to counter the latest tariffs. Hong Kong’s Hang Seng index added 0.8% as shares of Ping An Insurance Group listed in the city jumped 2.98% after the company announced its strongest first half profit growth in over a decade on Thursday.

Yields on 30-year debt hit an all-time low of 1.916% to be down 27 basis points for the week, the sharpest such decline since mid-2012, while the rate on the 10-year Treasury note was at 1.549%. The historic drop in long-term U.S. bond yields came after the interest rates on the closely watched 10-year and 2-year Treasury yields inverted — a bond market phenomenon that has historically been a reliable indicator of economic recessions.

The collapse in bond yields continued to make non-interest paying gold look relatively more attractive and the metal held at $1,528.60, just off a six-year peak. The dollar could make little headway on the safe-haven yen, though, and idled at 106.20 yen. Oil prices were trying to bounce after two days of sharp losses. Brent crude futures added 46 cents to $58.94, while U.S. crude rose 59 cents to $55.23 a barrel.

Upcoming Events:

  • 12:30 pm GMT – (CAD) ADP Non-Farm Employment Change
  • 12:30 pm GMT – (USD) Core Retail Sales m/m
  • 12:30 pm GMT – (CAD) Foreign Securities Purchases
  • 12:30 pm GMT – (USD) Building Permits
  • 12:30 pm GMT – (USD) Housing Starts
  • 2:00 pm GMT – (USD) Prelim UoM Consumer Sentiment
  • 2:00 pm GMT – (USD) Prelim UoM Inflation Expectations
  • &more…

Published by

IC Markets

IC Markets is revolutionizing on-line forex trading; on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals.