Tuesday 10th September: Asian market mixed on Chinese economic data and ahead of central bank meetings

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Tuesday 10th September: Asian market mixed on Chinese economic data and ahead of central bank meetings 1

Global Markets:

  • Asian Stock Markets : Nikkei up 0.32%, Shanghai Composite down 0.17%, Hang Seng up 0.10%, ASX down 0.63%
  • Commodities: Gold at $1496.05 (-1.00%), Silver at $17.92 (-1.35%), Brent Oil at $62.83 (+0.38%), WTI Oil at $58.11 (+0.45%)
  • Rates : US 10-year yield at 1.644, UK 10-year yield at 0.589, Germany 10-year yield at -0.571

News & Data:

  • (CNY) CPI y/y 2.80% vs 2.60% expected
  • (AUD) NAB Business Confidence 1 vs 4 previous
  • (JPY) M2 Money Stock y/y 2.40% vs 2.40% expected
  • (USD) Consumer Credit m/m 23.3B vs 16.2B expected
  • (GBP) NIESR GDP Estimate 0.10% vs 0.00% previous
  • (GBP) Industrial Production m/m 0.10% vs -0.30% expected
  • (GBP) Index of Services 3m/3m 0.20% vs 0.10% expected
  • (GBP) Goods Trade Balance -9.1B vs -9.6B expected
  • (GBP) Construction Output m/m 0.50% vs 0.20% expected
  • (GBP) Manufacturing Production m/m 0.30% vs -0.30% expected
  • (GBP) GDP m/m 0.30% vs 0.10% expected
  • (EUR) Sentix Investor Confidence -11.1 vs -13 expected
  • (EUR) German Trade Balance 20.2B vs 18.8B expected
  • (CHF) Unemployment Rate 2.30% vs 2.30% expected
  • (JPY) Economy Watchers Sentiment 42.8 vs 41.4 expected
  • (AUD) Home Loans m/m 5.00% vs 0.50% expected
  • (CNY) PPI y/y -0.80% vs -0.90% expected
  • (EUR) French Final Private Payrolls q/q 0.20% vs 0.30% expected

Markets Update:

Most Asian stocks swung lower on Tuesday, weighed by Chinese markets after data showed mainland factory prices shrinking at their fastest pace in three years while reports of German stimulus plans pushed global bond prices down. Investors continued to mull recent economic data while they away upcoming meetings by the U.S. Federal Reserve and the European Central Bank, both of which are expected to announce monetary stimulus moves.

The U.S. Federal Reserve is also widely expected to cut interest rates next week as policymakers race to shield the global economy from risks, which also include Britain’s planned exit from the European Union.

Asian markets were mixed in early trading Tuesday, following a lacklustre session on Wall Street. Chinese data pushed Shanghai Composite down 0.17% which in turn drove ASX 0.63% up. Nikkei edges up by 0.32% while, Hang Seng struggles for direction and is flat at 0.1%.

The Treasury yield curve steepened on Tuesday as long-term yields traded above short-term yields in a sign of receding concern about the economic outlook. The rise in Treasury yields helped the dollar rise to a five-week high of 107.50 yen. Last month the curve inverted for the first time since 2007 when long-term yields traded below short-term yields, which is a widely accepted indicator of coming recession.

Elsewhere in currency markets, the pound traded near a six-week high of $1.2385 after a law came into force demanding that Prime Minister Boris Johnson delay Britain’s departure from the European Union unless he can strike a divorce deal. Oil futures hit their highest level in six weeks in Asia after Saudi Arabia’s new energy minister confirmed he would stick with his country’s policy of limiting crude output to support prices. U.S. WTI 0.45% to $58.11 a barrel, the highest since July 31. Gold prices slipped to $1496.05 on Tuesday in Asia as the appetite for risk among investors has seemingly returned.

Upcoming Events:

  • 8:00 am GMT – (EUR) Italian Industrial Production m/m
  • 8:30 am GMT – (GBP) Average Earnings Index 3m/y
  • 8:30 am GMT – (GBP) Claimant Count Change
  • 8:30 am GMT – (GBP) Unemployment Rate
  • 10:00 am GMT – (USD) NFIB Small Business Index
  • 12:15 pm GMT – (CAD) Housing Starts
  • 12:30 pm GMT – (CAD) Building Permits m/m
  • 2:00 pm GMT – (USD) JOLTS Job Openings
  • 10:45 pm GMT – (NZD) Visitor Arrivals m/m
  • 11:50 pm GMT – (JPY) BSI Manufacturing Index
  • 10th-15th September- (CNY) New Loans
  • 10th-15th September- (CNY) M2 Money Supply y/y

 

 

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