Global Markets:
- Asian stock markets: Nikkei down 0.65 %, Shanghai Composite gained 1.10 %, Hang Seng fell 1.00 %, ASX dropped 0.60 %
- Commodities: Gold at $1082 (-1.10 %), Silver at $14.60 (-0.70 %), WTI Oil at $48.66 (+0.45 %), Brent Oil at $55.43 (-0.05 %)
- Rates: US 10 year yield at 2.27, UK 10 year yield at 2.00, German 10 year yield at 0.74
News & Data:
- China HSBC Manufacturing PMI 48.2, Expected: 49.7, Previous: 49.4
- Japan Manufacturing PMI 51.4, Expected: 50.5, Previous: 50.1
- New Zealand Trade Balance m/m -NZ$60mln, Expected: NZ$100mln, Previous: NZ$350mln
- New Zealand Trade Balance y/y -NZ$2.85bln, Expected: -NZ$2.7bln, Previous: -NZ$2.57bln
- S&P: Could Lower Australia Rating If Budget Doesn't Improve
- Spot Gold Hits Fresh 5 Year Low
- Asian shares tumble as weak China PMI revives demand concerns – RTRS
- China factories falter, commodities take the hit – RTRS
- Wall Street falls for third day as earnings fall short – RTRS
- Euro buoyant on Greek bailout step, Aussie hits six-year low – RTRS
Markets Update:
The US Dollar is bid again after a much better Initial Jobless Claims print yesterday and the currency extended gains against most of the major currencies overnight. The main event in the Asian session was the Chinese HSBC Manufacturing PMI, which arrived at 48.2 vs 49.7 expected. The poor data release send Asian stocks lower and put the Aussie Dollar under pressure. AUD/USD tumbled to 0.7268, from a high of 0.7355 ahead of the release. The next major support level now lies at 0.70.
Meanwhile, the USD/JPY remained very resilient throughout the week and with the Dollar bid again, it’s possible that we could see another test of the 124.40/50 resistance area before the trading week ends.
Looking ahead, we have a fairly busy economic calendar with plenty of Manufacturing & Services PMI data out of the Euro Zone.
Upcoming Events:
- 08:00 BST – French Manufacturing PMI
- 08:00 BST – French Services PMI
- 08:30 BST – German Manufacturing PMI
- 08:30 BST – German Services PMI
- 09:00 BST – Euro Zone Manufacturing PMI
- 09:00 BST – Euro Zone Services PMI
- 14:45 BST – US Services PMI
- 15:00 BST – US New Home Sales
