Asian markets sink to six month low amid SIno US trade friction

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IC Markets Market Review
IC Markets Market Review

Global Markets:

  • Asian Stock Markets : Nikkei down 1.86%, Shanghai Composite down 0.90%, Hang Seng down 2.79%, ASX down 1.88%
  • Commodities: Gold at $1464.90 (+0.51%), Silver at $16.49 (+1.34%), Brent Oil at $61.16 (-1.18%), WTI Oil at $55.09 (-1.02%)
  • Rates : US 10-year yield at 1.777, UK 10-year yield at 0.554, Germany 10-year yield at -0.488

News & Data:

  • (USD) Revised UoM Consumer Sentiment 98.4 vs 98.5 expected
  • (USD) Trade Balance -55.2B vs -54.2B expected
  • (USD) Unemployment Rate 3.70% vs 3.60% expected
  • (USD) Non-Farm Employment Change 164K vs 164K expected
  • (USD) Average Hourly Earnings m/m 0.30% vs 0.20% expected
  • (CAD) Trade Balance 0.1B vs -0.3B expected
  • (EUR) Retail Sales m/m 1.10% vs 0.30% expected
  • (EUR) Italian Retail Sales m/m 1.90% vs 0.40% expected
  • (EUR) PPI m/m -0.60% vs -0.40% expected
  • (GBP) Construction PMI 45.3 vs 46 expected
  • (EUR) Italian Industrial Production m/m -0.20% vs -0.40% expected
  • (CHF) Manufacturing PMI 44.7 vs 47 expected
  • (EUR) Spanish Unemployment Change -4.3K vs -21.4K expected
  • (CHF) CPI m/m -0.50% vs -0.40% expected
  • (AUD) PPI q/q 0.40% vs 0.20% expected
  • (AUD) Retail Sales m/m 0.40% vs 0.30% expected
  • (USD) Factory Orders m/m 0.60% vs 0.60% expected
  • (USD) Revised UoM Inflation Expectations 2.60% vs 2.60% previous
  • (AUD) AIG Services Index 43.9 vs 52.2 previous
  • (AUD) MI Inflation Gauge m/m 0.30% vs 0.00% previous
  • (NZD) ANZ Commodity Prices m/m -1.40% vs -3.90% previous
  • (CNY) Caixin Services PMI 51.6 vs 52 expected

CFTC Positioning Data:

  • EUR short 53K vs 39K short last week. Shorts increased by 14K
  • GBP short 90K vs 79K short last week. Shorts increased by 11K
  • JPY short 4K vs 9K short last week. Short trimmed by 5K
  • CHF short 14k vs 13k short last week. Shorts increased by 1K
  • AUD short 53k vs 48k short last week. Shorts increased by 5K
  • NZD short 12K vs 12K short last week. Positioning unchanged
  • CAD long 21K vs 31K long last week. Longs decreased by 10K

Markets Update:

Asian shares suffered their steepest daily drop in nine months on Monday, as Sino-U.S. trade friction sent the yuan slumping to a more than decade trough and stampeded investors into safe harbors including the yen, bonds and gold.

Markets have been badly spooked since U.S. President Donald Trump abruptly declared he would slap 10% tariffs on $300 billion in Chinese imports, ending a month-long trade truce. The grim mood followed declines on Wall Street on Friday with MSCI’s gauge of world stocks posting its largest weekly loss of the year. The abrupt escalation capped a critical week for global markets after the U.S. Federal Reserve delivered a widely anticipated interest rate cut and played down expectations of further easing. Futures are now pricing in deeper cuts than before last week’s Fed meeting.

Asian share markets are a sea of red with Japan’s Nikkei shedding 1.86% to the lowest since early June. It was the sharpest daily drop since March and led Japanese officials to call a special meeting to discuss market turmoil. Australian ASX slipped about 1.8% to spend their fourth straight session in the red, and Shanghai Composite plunges 0.9% as trade war intensifies. Hang Seng plunges a whooping 2.79 as protests crippling city adds to the existing woes of the investors.

Bond markets were well ahead of the game as U.S. 10-year yields dived 7 basis points to 1.77%, a violent shift for usually cautious Asian hours. Yields in Australia and New Zealand touched all-time lows. The flight to safety lifted the yen, which often gains at times of stress thanks to Japan’s position as the world’s largest creditor. The dollar slipped to a seven-month trough of 105.78 yen.

Oil prices were dragged down on demand worries, while gold climbed 0.5% to $1,464.9 an ounce. Oil extended losses with WTI off 26 cents at 55.09 and Brent down 35 cents at $61.16.

Upcoming Events:

Monday, August 05, 2019

  • 1:00 am GMT – (AUD) MI Inflation Gauge m/m
  • 1:00 am GMT – (NZD) ANZ Commodity Prices m/m
  • 1:45 am GMT – (CNY) Caixin Services PMI
  • 5:45 am GMT – (CHF) SECO Consumer Climate
  • 6:30 am GMT – (CHF) Retail Sales y/y
  • 7:15 am GMT – (EUR) Spanish Services PMI
  • 7:45 am GMT – (EUR) Italian Services PMI
  • 7:50 am GMT – (EUR) French Final Services PMI
  • 7:55 am GMT – (EUR) German Final Services PMI
  • 8:00 am GMT – (EUR) Final Services PMI
  • 8:30 am GMT – (EUR) Sentix Investor Confidence
  • 8:30 am GMT – (GBP) Services PMI
  • All Day – (CAD) Bank Holiday
  • 1:45 pm GMT – (USD) Final Services PMI
  • 2:00 pm GMT – (USD) ISM Non-Manufacturing PMI
  • 6:00 pm GMT – (USD) Loan Officer Survey
  • 10:45 pm GMT – (NZD) Employment Change q/q
  • 10:45 pm GMT – (NZD) Unemployment Rate
  • 10:45 pm GMT – (NZD) Labor Cost Index q/q
  • 11:01 pm GMT – (GBP) BRC Retail Sales Monitor y/y
  • 11:30 pm GMT – (JPY) Average Cash Earnings y/y
  • 11:30 pm GMT – (JPY) Household Spending y/y

Tuesday, August 06, 2019

  • 1:30 am GMT – (AUD) ANZ Job Advertisements m/m
  • 1:30 am GMT – (AUD) Trade Balance
  • 3:00 am GMT – (NZD) Inflation Expectations q/q
  • 3:35 am GMT – (JPY) 30-y Bond Auction
  • 4:30 am GMT – (AUD) Cash Rate
  • 4:30 am GMT – (AUD) RBA Rate Statement
  • 5:00 am GMT – (JPY) Leading Indicators
  • 6:00 am GMT – (EUR) German Factory Orders m/m
  • 2:00 pm GMT – (USD) JOLTS Job Openings
  • Tentative – (USD) IBD/TIPP Economic Optimism
  • Tentative – (NZD) GDT Price Index
  • 4:00 pm GMT – (USD) FOMC Member Bullard Speaks
  • 10:30 pm GMT – (AUD) AIG Construction Index
  • 11:50 pm GMT – (JPY) BOJ Summary of Opinions

Wednesday, August 07, 2019

  • 1:30 am GMT – (AUD) Home Loans m/m
  • 2:00 am GMT – (NZD) Official Cash Rate
  • 2:00 am GMT – (NZD) RBNZ Monetary Policy Statement
  • 2:00 am GMT – (NZD) RBNZ Rate Statement
  • 3:00 am GMT – (NZD) RBNZ Press Conference
  • 6:00 am GMT – (EUR) German Industrial Production m/m
  • 6:45 am GMT – (EUR) French Trade Balance
  • 7:00 am GMT – (CHF) Foreign Currency Reserves
  • 7:30 am GMT – (GBP) Halifax HPI m/m
  • 2:00 pm GMT – (CAD) Ivey PMI
  • 2:30 pm GMT – (USD) Crude Oil Inventories
  • 5:01 pm GMT – (USD) 10-y Bond Auction
  • 7:00 pm GMT – (USD) Consumer Credit m/m
  • 9:30 pm GMT – (AUD) RBA Assist Gov Bullock Speaks
  • 12:00 AM GMT – (GBP) RICS House Price Balance
  • 12:00 AM GMT – (JPY) Bank Lending y/y
  • 12:00 AM GMT – (JPY) Current Account

Thursday, August 08, 2019

  • 12:00 AM GMT – (CNY) Trade Balance
  • 12:00 AM GMT – (CNY) USD-Denominated Trade Balance
  • 12:00 AM GMT – (EUR) ECB Economic Bulletin
  • 12:00 AM GMT – (CNY) New Loans
  • 12:00 AM GMT – (CNY) M2 Money Supply y/y
  • 12:00 AM GMT – (CAD) NHPI m/m
  • 12:00 AM GMT – (USD) Unemployment Claims
  • 12:00 AM GMT – (USD) Final Wholesale Inventories m/m
  • 12:00 AM GMT – (USD) Natural Gas Storage
  • 12:00 AM GMT – (USD) 30-y Bond Auction
  • 12:00 AM GMT – (NZD) Visitor Arrivals m/m
  • 12:00 AM GMT – (AUD) RBA Gov Lowe Speaks
  • 12:00 AM GMT – (JPY) M2 Money Stock y/y
  • 12:00 AM GMT – (JPY) Prelim GDP Price Index y/y
  • 12:00 AM GMT – (JPY) Prelim GDP q/q

Friday, August 09, 2019

  • 12:00 AM GMT – (AUD) RBA Monetary Policy Statement
  • 12:00 AM GMT – (CNY) CPI y/y
  • 12:00 AM GMT – (CNY) PPI y/y
  • 12:00 AM GMT – (JPY) Economy Watchers Sentiment
  • 12:00 AM GMT – (CHF) Unemployment Rate
  • 12:00 AM GMT – (EUR) German Trade Balance
  • 12:00 AM GMT – (EUR) French Industrial Production m/m
  • 12:00 AM GMT – (EUR) French Prelim Private Payrolls q/q
  • 12:00 AM GMT – (EUR) Italian Trade Balance
  • 12:00 AM GMT – (GBP) GDP m/m
  • 12:00 AM GMT – (GBP) Manufacturing Production m/m
  • 12:00 AM GMT – (GBP) Prelim GDP q/q
  • 12:00 AM GMT – (GBP) Construction Output m/m
  • 12:00 AM GMT – (GBP) Goods Trade Balance
  • 12:00 AM GMT – (GBP) Index of Services 3m/3m
  • 12:00 AM GMT – (GBP) Industrial Production m/m
  • 12:00 AM GMT – (GBP) Prelim Business Investment q/q
  • 12:00 AM GMT – (CAD) Housing Starts
  • 12:00 AM GMT – (CAD) Employment Change
  • 12:00 AM GMT – (CAD) Unemployment Rate
  • 12:00 AM GMT – (CAD) Building Permits m/m
  • 12:00 AM GMT – (USD) Core PPI m/m
  • 12:00 AM GMT – (USD) PPI m/m
  • 12:00 AM GMT – (GBP) NIESR GDP Estimate

Saturday, August 10, 2019

  • 12:00 AM GMT – (CNY) Foreign Direct Investment ytd/y

Sunday, August 11, 2019

  • 12:00 AM GMT – (JPY) Prelim Machine Tool Orders y/y
  • 12:00 AM GMT – (NZD) FPI m/m
  • &more…

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