Thursday 10th May: Asian markets modestly higher; reports of Israel-Iran skirmish in Syria

IC Markets Market Review
IC Markets Market Review

Global Markets:

  • Asian Stock Markets : Nikkei up 0.44%, Shanghai Composite up 0.07%, Hang Seng up 0.77%, ASX up 0.22%
  • Commodities : Gold at $1313.90 (+0.07%), Silver at $16.55 (+0.07%), Brent Oil at $77.72 (+0.66%), WT Crude at $71.64 (+0.70%)
  • Rates : US 10-year yield at 2.982, UK 10-year yield at 1.466, Germany 10-year yield at 0.561

News & Data:

  • (CNY) PPI y/y 3.40% vs 3.40% expected
  • (CNY) CPI y/y 1.80% vs 1.90% expected
  • (NZD) Official Cash Rate 1.75% vs 1.75% expected
  • (USD) Crude Oil Inventories -2.2M vs -0.2M expected
  • (USD) Core PPI m/m 0.20% vs 0.20% expected
  • (USD) PPI m/m 0.10% vs 0.20% expected
  • (CAD) Building Permits m/m 3.10% vs 2.00% expected
  • Israeli military says it struck dozens of Iranian military targets in Syria overnight.
  • Singapore likely summit venue after North Korea releases prisoners: U.S. official
  • The RBNZ sees softer GDP growth and inflation, and plans to lift interest rates later

Markets Update:

Asian markets mostly higher today, following cues from Wall Street. Crude continues to gain from the fallout of the Iran deal – however, the geo-political incident has not significantly added to risk aversion.

Chinese markets traded higher today, as major oil producers gained. CPI numbers show that Chinese Inflation decelerated last month. Nikkei has been modestly higher, as the yen is at its lowest against the dollar in a week.

Energy stocks and automakers have been the major gainers. ASX continues to advanced, backed by energy stocks. Miners are also higher, supported by rising base metal process.

Crude oil prices continued to rally Wednesday amid geopolitical tensions and a significant drop in U.S. oil inventories. Reports of an Iran-Israeli skirmish in Syria have only pushed Crude prices further higher up.

Rising oil prices in turn pushed up U.S. Treasury yields by fanning inflation concerns. The 10-year Treasury note yield rose to a two-week high above the 3 percent threshold before pulling back to 2.982 percent .

Upcoming Events:

  • 08:30 AM GMT – (GBP) Manufacturing Production m/m
  • 08:30 AM GMT – (GBP) Goods Trade Balance
  • 11:00 AM GMT – (GBP) BOE Inflation Report
  • 11:00 AM GMT – (GBP) MPC Official Bank Rate Votes
  • 11:00 AM GMT – (GBP) Monetary Policy Summary
  • 11:00 AM GMT – (GBP) Official Bank Rate
  • 11:00 AM GMT – (GBP) Asset Purchase Facility
  • 11:00 AM GMT – (GBP) MPC Asset Purchase Facility Votes
  • 12:30 PM GMT – (CAD) NHPI m/m
  • 12:30 PM GMT – (USD) CPI m/m
  • 12:30 PM GMT – (USD) Core CPI m/m
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 10:30 PM GMT – (NZD) Business NZ Manufacturing Index
  • &more…

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