- Asian Stock Markets : Nikkei up 0.93%, Shanghai Composite down 0.42%, Hang Seng up 0.11%, ASX down 0.39%
- Commodities : Gold at $1257.60 (-0.16%), Silver at $16.13 (-0.06%), Brent Oil at $78.49 (+0.54%), WTI Oil at $74.25 (+0.54%)
- Rates : US 10-year yield at 2.864, UK 10-year yield at 1.274, Germany 10-year yield at 0.306
News & Data:
- (CNY) CPI y/y 1.90% vs 1.90% expected
- (AUD) NAB Business Confidence 6 vs 7 previous
- Australian Dollar Inches Lower After Business Confidence, China CPI
- China June producer inflation hits six-month high, consumer inflation up slightly
- European chamber urges China to create ‘investment reciprocity’ to quell the tensions with its trading partners
- Chinese exporters scramble to cope with US tariffs
Asian stock markets, with the exception of Australia and New Zealand, are higher on Tuesday following the positive cues overnight from Wall Street as optimism about the upcoming corporate earnings season helped offset worries about rising trade tensions between the U.S. and China. Crude oil prices rose in Asian trades after edging higher overnight.
Banks, along with factory-automation and nonferrous-metal stocks, led Japan’s Nikkei 1% higher. Higher Treasury yields and the prospects of strong near-term U.S. GDP growth helped sectors sensitive to economic cycles. Chinese shares were a bit soft with Shanghai blue chips off 0.2 percent after climbing 2.8 percent on Monday for the biggest daily jump since August 2016.
Both the Dow and S&P 500 boasted their biggest gains in more than a month overnight, as bank shares jumped ahead of earnings reports later this week. The S&P banks index posted its sharpest rise since March 26. The Australian market has drifted lower, after opening higher following the positive cues from Wall Street and higher commodity prices, after hitting a 10 and a half year high yesterday.
The story in currency markets was all about political capers in London. Prime Minister Theresa May’s foreign minister and Brexit negotiator quit on Monday in protest at her plans to keep close trade ties with the European Union after Britain leaves the bloc, stirring rebellion in her party’s ranks.
The uncertainty saw sterling sink as deep as $1.3189 at one stage before bouncing somewhat to $1.3254. The pound’s pain was a boon for the U.S. dollar which rallied broadly on expectations the Federal Reserve will keep raising its interest rates. Against a basket of currencies, the dollar bounced to 94.083 from a low of 93.713. In commodity markets, oil gained on supply disruptions in Canada and Libya and ahead of looming sanctions on Iran.
- 09:30 AM GMT – (GBP) GDP m/m
- 09:30 AM GMT – (GBP) Manufacturing Production m/m
- 09:30 AM GMT – (GBP) Goods Trade Balance
- 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
- 01:30 PM GMT – (CAD) Building Permits m/m