A news headline has just come up, suggesting that the US is going to delay a Huawei licence in response to China stopping crop buying and has seen an instant move to safe-haven ground, with the Jpy spiking higher and the Aud$ dropping by 20 points. More to come on this I guess.
The main action was once again in the stock markets on Thursday, with global stocks ending up by around 2% after China’s PBOC fixed the Yuan slightly higher than had been expected, easing concerns that the trade fight between the two countries was about to move into an all-out currency war. The FX markets themselves were mixed, without any big moves in the major currencies although the Aud$ and the Nzd$ continue to recover from Wednesday’s sharp selloff. US Bond yields have stabilised and ended the day largely unchanged, as have the metals, while WTI rallied by around 1.4% on the back of yesterday’s upbeat Chinese trade data and the appreciation of the Yuan at the PBOC Fix.
Looking ahead, Friday will kick off with the NZ Visitor Arrivals, Japan Q2 GDP and a big session for Australia which will include the RBA Monetary Policy Statement and RBA Governor Lowe testifying to the Senate Finance Committee, as well as the China CPI/PPI for July (CPI, exp 0.2%mm, 2.7%yy; PPI, exp -0.1%yy) and the Chinese New Loans. From Europe comes the German, German Trade Balance and Current Account (exp Imports + 0.3%, Exports -0.1%), the UK Q2 GDP (exp 0.00%qq), Manufacturing/Industrial Production, NIESR GDP Estimate, Trade Balance and Goods Trade Balance, while from the US, we have inflation data in the form of the July PPI (exp 0.2%mm, 1.7%yy). Have a good weekend.
Economic data highlights will include:
Fri: NZ Visitor Arrivals, Japan Q2 GDP, RBA Monetary Policy Statement, China CPI/PPI, New Loans, German Trade Balance, UK Q2 GDP, Manufacturing/Industrial Production, NIESR GDP Estimate, Trade Balance, Goods Trade Balance, RBA Governor Lowe Speech, US PPI,
Market moves, in brief:
FX: DXY 97.64 (+0.03%)
Bonds: US10Y; 1.72% (-0.44%), German 10Y; -0.561% (+3.85%), UK 10Y; +0.53% (+10.78%), Australian 10Y; 0.987% (+1.58%), NZ 10Y; 1.110% (-5.13 %), China 10Y; 3.060% (+0.38%)
Stock Indices: DJI; +1.43%, S+P; +1.88%, NASDAQ; +2.24%, EUStoxx50; +1.98%, FTSE100; +1.21%, Shanghai Composite; +0.93%,
Metals: Gold $1500 oz (-0.02%), Silver $16.92 oz (-1.06%), Copper $2.6075 lb (+1.42%), Iron Ore $97.37 per tonne (NYMEX) (+1.21%),
Oil: WTI $52.86 pb (+1.24%)
|INDICES / COMMODITIES|