Tuesday 15th January: Green Asia on stimulus hopes

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Tuesday 15th January: Green Asia on stimulus hopes 1

Global Markets:

  • Asian Stock Markets : Nikkei up 0.85%, Shanghai Composite up 0.83%, Hang Seng up 1.65%, ASX up 0.71%
  • Commodities : Gold at $1291.25 (0.00%), Silver at $15.72 (+0.24%), Brent Oil at $59.78 (+1.34%), WTI Oil at $51.20 (+1.37%)
  • Rates : US 10-year yield at 2.715, UK 10-year yield at 1.298, Germany 10-year yield at 0.231

News & Data:

  • (NZD) FPI m/m -0.20% vs -0.60% previous
  • (NZD) NZIER Business Confidence -17 vs -30 previous
  • (EUR) Industrial Production m/m -1.70% vs 0.30% expected
  • (CNY) Foreign Direct Investment ytd/y 0.90% vs -1.30% previous
  • (EUR) German WPI m/m -1.20% vs 0.30% expected
  • (CNY) USD-Denominated Trade Balance 57.1B vs 51.6B expected
  • China NDRC: Will strengthen counter-cyclical adjustments in its macroeconomic policy
  • Janet Yellen says it’s ‘very possible’ the Fed has made its last rate hike of this cycle

Markets Update:

Asian stocks pulled ahead on Tuesday, led by a bounce in Chinese shares as Beijing signaled more supportive measures to stabilize a slowing economy, while the British pound braced for a showdown in parliament over the government’s Brexit plan.

In Japan, the benchmark Nikkei 225 added 0.9 percent after resuming trade on Tuesday — the Japanese market was closed Monday for a public holiday. South Korea’s Kospi gained 1.31 percent while the Kosdaq rose 1.52 percent. Greater China markets also gained: Hong Kong’s Hang Seng index rose 1.65 percent. Mainland Chinese markets higher, with Shanghai composite up by 0.85%.

Australia’s ASX 200 was up 0.7 percent as the heavily-weighted financial subindex added 0.57 percent while the energy and materials sectors also posted gains.

The British pound is likely to steal the limelight later in the day as the Britain’s parliament will vote on Prime Minister Theresa May’s Brexit deal. The pound’s one-month implied volatility stood at 12.5 percent, above the average for the past year of around 8.8 percent well off 20-percent plus levels seen in the days just before the UK referendum on June 23, 2016. Oil prices also rebounded on supply cuts by producer club OPEC and Russia.

Upcoming Events:

  • 02:30 PM GMT – (USD) PPI m/m
  • 02:30 PM GMT – (USD) Core PPI m/m
  • 04:00 PM GMT – (EUR) ECB President Draghi Speaks
  • Tentative – (GBP) Parliament Brexit Vote
  • 07:00 PM GMT – (USD) FOMC Member George Speaks
  • &more…

 

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