Thursday 6th August: Asian markets lower as investors wait for stimulus packages

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.43%, Shanghai Composite up 0.26%, Hang Seng down 0.63%, ASX up 0.68%
  • Commodities : Gold at $2050.05 (+0.64%), Silver at $27.72 (+3.07%), Brent Oil at $45.34 (+0.38%), WTI Oil at $42.23 (+0.09%)
  • Rates : US 10-year yield at 0.543, UK 10-year yield at 0.132, Germany 10-year yield at -0.508

News & Data:

  • (GBP) MPC Asset Purchase Facility Votes 0-0-9 vs 0-0-9 expected
  • (GBP) Official Bank Rate 0.10% vs 0.10% expected
  • (GBP) MPC Official Bank Rate Votes 0-0-9 vs 0-0-9 expected
  • (NZD) Inflation Expectations q/q 1.43% vs 1.24% previous
  • (USD) Crude Oil Inventories -7.4M vs -3.4M expected
  • (USD) ISM Non-Manufacturing PMI 58.1 vs 55 expected
  • (USD) ADP Non-Farm Employment Change 167K vs 1200K expected
  • Fed’s Clarida says economy could reach pre-pandemic levels by end of 2021
  • BoE : Bank Rate maintained at 0.1% – August 2020

Markets Update:

Asian stock markets are mostly higher on Thursday following the positive cues overnight from Wall Street amid optimism that U.S. lawmakers will eventually reach an agreement on a new coronavirus relief bill. Encouraging news regarding coronavirus vaccines also boosted sentiment.

Mainland Chinese stocks retraced losses by the afternoon, with the Shanghai composite up 0.3% while the Shenzhen component down about 0.4%. Hong Kong’s Hang Seng index led losses regionally as it fell 0.6% by the afternoon. In Japan, the Nikkei 225 dipped 0.4% in afternoon trade while the Topix index shed 0.3%. Shares in Australia edged higher as the S&P/ASX 200 gained 0.7%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 92.757 in a volatile trading week that has seen it decline from levels above 93.6. Brent crude inched back toward a five-month high touched overnight, rising 0.4% to $45.34 per barrel and U.S. crude was steady at $42.23 per barrel.

Upcoming Events:

  • 11:30 AM GMT – (GBP) BOE Gov Bailey Speaks
  • 12:30 PM GMT – (USD) Unemployment Claims