Thursday 12th July: Asian markets recover despite continued trade war concerns

IC Markets Market Review
IC Markets Market Review

Global Markets:

  • Asian Stock Markets : Nikkei up 1.26%, Shanghai Composite up 2.26%, Hang Seng up 0.94%, ASX up 1.03%
  • Commodities : Gold at $1243.60 (-0.06%), Silver at $15.85 (+0.18%), Brent Oil at $74.61 (+1.65%), WTI Oil at $70.83 (+0.64%)
  • Rates : US 10-year yield at 2.860, UK 10-year yield at 1.293, Germany 10-year yield at 0.303

News & Data:

  • (USD) Core PPI m/m 0.30% vs 0.20% expected
  • (USD) PPI m/m 0.30% vs 0.20% expected
  • (CAD) Overnight Rate 1.50% vs 1.50% expected
  • (USD) Crude Oil Inventories -12.6M vs -4.1M expected
  • China’s Commerce Ministry Alters Regular Press Conference Time
  • PBOC set the Yuan reference rate at 6.6723
  • Properties taking longer to sell in sluggish market, says RICS

Markets Update:

Asian stock markets are higher on Thursday, recovering from the sharp losses in the previous session, despite the weak cues overnight from Wall Street as well as lower commodity prices amid escalating U.S.-China trade tensions. The Chinese market is leading the rebound. Crude oil prices also advanced in Asian trades after falling sharply overnight.

The Japanese market is notably higher, recovering from sharp losses in the previous session. The Australian market is also advancing, as gains made by banks helped offset weakness in resources stocks.

Elsewhere, Hong Kong’s Hang Seng Index edged up by 0.71 percent, with property, financials and consumer goods stocks rising more than 1 percent. On the mainland, Shanghai composite  and the smaller Shenzhen composite both advanced more than 2 percent, paring Wednesday’s sharp.

China’s yuan strengthened 0.3 percent versus the dollar, partially recovering from a big slide the previous day and pulling back from 11-month lows brushed last week. The yuan firmed after the currency’s Thursday midpoint, set by the People’s Bank of China, was not as weak as the market braced for. The dollar was buoyant, supported by mounting trade tensions and Wednesday’s strong U.S. inflation data.

The dollar index against a basket of six major currencies was steady at 94.700 after gaining 0.6 percent overnight. Against the yen, which usually strengthens in times of political tension and market turmoil, the greenback stretched its overnight rally and rose to 112.385 yen, its highest since January.

Upcoming Events:

  • 09:30 AM GMT – (GBP) BOE Credit Conditions Survey
  • 12:30 PM GMT – (EUR) ECB Monetary Policy Meeting Accounts
  • 01:30 PM GMT – (CAD) NHPI m/m
  • 01:30 PM GMT – (USD) CPI m/m
  • 01:30 PM GMT – (USD) Core CPI m/m
  • 01:30 PM GMT – (USD) Unemployment Claims
  • 11:30 PM GMT – (NZD) Business NZ Manufacturing Index
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