Monday 4th February: Asian markets trade higher ahead of Lunar New Year holidays

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IC Markets Market Review
IC Markets Market Review

Global Markets:

  • Asian Stock Markets : Nikkei up 0.44%, Hang Seng down 0.02%, ASX up 0.48%
  • Commodities : Gold at $1316.65 (-0.41%), Silver at $15.82 (-0.68%), Brent Oil at $62.84 (+0.14%), WTI Oil at $55.25 (-0.02%)
  • Rates : US 10-year yield at 2.697, UK 10-year yield at 1.246, Germany 10-year yield at 0.169

News & Data:

  • (AUD) Building Approvals m/m -8.40% vs 2.10% expected
  • (USD) Revised UoM Consumer Sentiment 91.2 vs 90.8 expected
  • (USD) ISM Manufacturing PMI 56.6 vs 54.1 expected
  • (USD) Unemployment Rate 4.00% vs 3.90% expected
  • (USD) Non-Farm Employment Change 304K vs 165K expected
  • (USD) Average Hourly Earnings m/m 0.10% vs 0.30% expected
  • (EUR) Core CPI Flash Estimate y/y 1.10% vs 1.00% expected
  • (EUR) CPI Flash Estimate y/y 1.40% vs 1.40% expected
  • (GBP) Manufacturing PMI 52.8 vs 53.5 expected
  • Australian Royal Commission’s report into Misconduct in the Banking, Superannuation and Financial Services Industry released
  • PBOC establishes bureau to strengthen financial regulation

Markets Update:

Asia stocks hovered near four-month highs on Monday after a mixed performance on Wall Street at the close of last week, while the dollar firmed against the yen following strong U.S. job and manufacturing data. Volumes are subdued as several markets in the region head into the Lunar New Year holidays this week.

Hong Kong’s Hang Seng traded flat – on the eve of the Lunar New Year holidays. Over in Japan, the Nikkei 225 advanced 0.44 percent while the Topix rose 1.07 percent to finish its trading day at 1,581.33. Shares of tech giant Sony closed down 8.07 percent after the company cut its sales and operating revenue forecast for the fiscal year. The Australian market is advancing despite the mixed cues from Wall Street Friday, with banks recovering after a weak start ahead of the publication of the Kenneth Hayne royal commission recommendations.

Friday’s robust economic data triggered a sharp rebound in U.S. Treasury yields, in turn lifting the dollar. On Monday, the U.S. currency was a shade higher at 109.555 yen after advancing 0.6 percent on Friday. The benchmark 10-year U.S. Treasury yield was at 2.686 percent after climbing nearly 6 basis points on Friday to pull away from a four-week low of 2.619 percent earlier last week.

On Friday, WTI futures had rallied 2.7 percent on the upbeat U.S. job report, signs that Washington’s sanctions on Venezuelan exports have helped tighten supply and data showing U.S. drillers cut the number of oil rigs.

Upcoming Events:

Tuesday, February 05, 2019

  • 01:30 AM GMT – (AUD) Retail Sales m/m
  • 01:30 AM GMT – (AUD) Trade Balance
  • 04:30 AM GMT – (AUD) RBA Rate Statement
  • 04:30 AM GMT – (AUD) Cash Rate
  • 10:30 AM GMT – (GBP) Services PMI
  • 04:00 PM GMT – (USD) ISM Non-Manufacturing PMI

Wednesday, February 06, 2019

  • 02:30 AM GMT – (AUD) RBA Gov Lowe Speaks
  • 02:35 PM GMT – (CAD) Gov Council Member Lane Speaks
  • 04:00 PM GMT – (CAD) Ivey PMI
  • 10:45 PM GMT – (NZD) Employment Change q/q
  • 10:45 PM GMT – (NZD) Unemployment Rate

Thursday, February 07, 2019

  • 12:05 AM GMT – (USD) FOMC Member Quarles Speaks
  • 01:00 AM GMT – (USD) Fed Chair Powell Speaks
  • 11:00 AM GMT – (EUR) EU Economic Forecasts
  • 01:00 PM GMT – (GBP) BOE Inflation Report
  • 01:00 PM GMT – (GBP) MPC Official Bank Rate Votes
  • 01:00 PM GMT – (GBP) Monetary Policy Summary
  • 01:00 PM GMT – (GBP) Official Bank Rate
  • 03:30 PM GMT – (USD) FOMC Member Clarida Speaks

Friday, February 08, 2019

  • 01:00 AM GMT – (JPY) Average Cash Earnings y/y
  • 01:30 AM GMT – (AUD) RBA Monetary Policy Statement
  • 01:30 AM GMT – (USD) FOMC Member Bullard Speaks
  • 02:30 PM GMT – (CAD) Employment Change
  • 02:30 PM GMT – (CAD) Unemployment Rate
  • &more…

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