Monday 10th December: Asian Markets slump as growth concerns intensify

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IC Markets Market Review
IC Markets Market Review

Global Markets:

  • Asian Stock Markets : Nikkei down 2.04%, Shanghai Composite down 0.77%, Hang Seng down 1.46%, ASX down 2.27%
  • Commodities : Gold at $1255.30 (+0.22%), Silver at $14.69 (-0.05%), Brent Oil at $61.95 (+0.45%), WTI Oil at $52.45 (-0.30%)
  • Rates : US 10-year yield at 2.841, UK 10-year yield at 1.273, Germany 10-year yield at 0.247

News & Data:

  • (CNY) Trade Balance 306B vs 227B expected
  • (USD) Prelim UoM Consumer Sentiment 97.5 vs 97 expected
  • (USD) Unemployment Rate 3.70% vs 3.70% expected
  • (USD) Non-Farm Employment Change 155K vs 198K expected
  • (USD) Average Hourly Earnings m/m 0.20% vs 0.30% expected
  • (CAD) Unemployment Rate 5.60% vs 5.80% expected
  • (CAD) Employment Change 94.1K vs 10.5K expected
  • Next move in Australia cash rate likely up, but cut not ruled out: AU central banker
  • Moody’s: Australian banks’ loan growth slows, easing funding pressure, but home mortgage arrears rise

Markets Update:

Asian stock markets are in negative territory on Monday following the sell-off on Wall Street Friday after the release of weaker-than-expected U.S. jobs data for the month of November raised concerns about a slowing economy.

The rising tensions between the U.S. and China over the detention of tech company Huawei’s CFO Meng Wanzhou as well as disappointing Chinese trade data for November also dampened investor sentiment.

The mainland Chinese markets, closely watched as a result of the trade war between Beijing and Washington, slipped by the end of the morning session. The Shanghai composite declined by 0.8 percent while the Shenzhen composite shed 1.3 percent. In Hong Kong, the Hang Seng fell by 1.5%.

The Japanese market is losing following the sell-off on Wall Street Friday and on a stronger yen. The benchmark Nikkei 225 Index is losing 1.8 percent. The Australian market is notably lower; the ASX is down 2.3%, with banks among the leading decliners.

The dollar was on the backfoot after Friday’s soft U.S. jobs report raised worries that economic growth has peaked and the Federal Reserve may pause its rate tightening cycle sooner than previously thought. The Chinese yuan dipped following weak trade and inflation data over the weekend that added to worries about its slowing economy. Oil prices rose, extending gains from Friday when producer club OPEC and some non-affiliated producers agreed a supply cut of 1.2 million barrels per day (bpd) from January.

Upcoming Events:

Monday, December 10, 2018

  • 07:30 AM GMT – (CAD) Gov Council Member Lane Speaks
  • 07:30 AM GMT – (GBP) MPC Member Cunliffe Speaks
  • 10:30 AM GMT – (GBP) GDP m/m
  • 10:30 AM GMT – (GBP) Manufacturing Production m/m
  • 01:45 PM GMT – (CAD) Gov Council Member Lane Speaks

Tuesday, December 11, 2018

  • 01:30 AM GMT – (AUD) HPI q/q
  • 10:30 AM GMT – (GBP) Average Earnings Index 3m/y
  • 10:30 AM GMT – (GBP) Unemployment Rate
  • 11:00 AM GMT – (EUR) German ZEW Economic Sentiment
  • 02:30 PM GMT – (USD) PPI m/m
  • 02:30 PM GMT – (USD) Core PPI m/m
  • Tentative – (GBP) Parliament Brexit Vote

Wednesday, December 12, 2018

  • 12:30 AM GMT – (AUD) Westpac Consumer Sentiment
  • 02:30 PM GMT – (USD) CPI m/m
  • 02:30 PM GMT – (USD) Core CPI m/m

Thursday, December 13, 2018

  • 09:30 AM GMT – (CHF) SNB Monetary Policy Assessment
  • 09:30 AM GMT – (CHF) Libor Rate
  • 10:00 AM GMT – (CHF) SNB Press Conference
  • 01:45 PM GMT – (EUR) Main Refinancing Rate
  • 02:30 PM GMT – (EUR) ECB Press Conference
  • 10:30 PM GMT – (NZD) Business NZ Manufacturing Index

Friday, December 14, 2018

  • 03:00 AM GMT – (CNY) Fixed Asset Investment ytd/y
  • 03:00 AM GMT – (CNY) Industrial Production y/y
  • 09:15 AM GMT – (EUR) French Flash Manufacturing PMI
  • 09:15 AM GMT – (EUR) French Flash Services PMI
  • 09:30 AM GMT – (EUR) German Flash Manufacturing PMI
  • 09:30 AM GMT – (EUR) German Flash Services PMI
  • 10:00 AM GMT – (EUR) Flash Manufacturing PMI
  • 10:00 AM GMT – (EUR) Flash Services PMI
  • 02:30 PM GMT – (USD) Core Retail Sales m/m
  • 02:30 PM GMT – (USD) Retail Sales m/m
  • &more…

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