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Markets Update: CN poor macro data continues; CN surprise MLF rate cut; JP GDP growth doubles ests, tempered by poor consumption and business spending; US Retail Sales tonight;
Economic Calendar
Global Markets Roundup: 15 Aug 2023
US stocks were mostly positive, with outperformance in the Nasdaq amid the advances in Nvidia after Microsoft named the stock a top pick. The S&P 500 rose by 0.3%, the Dow Jones Industrial Average rose by 0.2%, and the Nasdaq Composite Index rose by 0.8%.
APAC stocks traded mixed as participants digested key releases including disappointing Chinese activity data and the People's Bank of China's (PBoC) surprise cuts to its 7-day Reverse Repo and 1-year Medium-term Lending Facility (MLF) rates. The Hang Seng Index fell by 0.2%, the Shanghai Composite Index rose by 0.1%, and the Nikkei 225 was flat.
European equity futures are indicative of a higher open with the Euro Stoxx 50 +0.4% after the cash market closed up by 0.2% yesterday. The Stoxx 600, which tracks the performance of 600 companies listed in the European Union, is expected to open 0.4% higher.
The US dollar index (DXY) remains above 103, as investors continue to worry about the impact of inflation and the war in Ukraine on the global economy. The DXY is a measure of the value of the US dollar against a basket of six other major currencies.
USD/CNH advanced to 7.3121 post-MLF reduction, as the PBoC's surprise cuts to its 7-day Reverse Repo and 1-year MLF rates boosted demand for the US dollar. The Chinese yuan (CNH) is the onshore version of the Chinese currency.
AUD leads the majors, as the Australian dollar is supported by higher commodity prices and expectations of a rate hike from the Reserve Bank of Australia (RBA) later this month. The RBA is expected to raise interest rates by 25 basis points on July 5th.
EUR/USD sits just above 1.09, as the euro is weighed down by concerns about the European economy. The eurozone is facing headwinds from the war in Ukraine and the energy crisis.
COMMODITIES
Crude futures traded relatively little changed alongside the mixed signals from the Asia-Pac region.
US total shale regions September oil production is seen to decline by 19k BPD to 9.415mln bpd (previous estimate was a decline of 15k BPD in August), according to the Energy Information Administration (EIA).
China's July crude oil output rose by 1.9% year-on-year (YoY) to 122.4mln tons and natural gas output rose by 7.6% YoY to 18.4bcm, while aluminum output rose by 1.5% YoY to 3.48mln tons, according to the National Bureau of Statistics.
India raised its windfall tax on petroleum crude to INR 7,100/tonne (previous rate was INR 4,250/tonne) with effect from August 15th, while it raised the windfall tax on diesel to INR 5.50/litre from INR 1/litre and raised the windfall tax on aviation turbine fuel to INR 2/litre from nil, according to Reuters citing a notification.
Spot gold was uneventful amid a steady dollar ahead of US data releases and tomorrow's FOMC Minutes.
Copper futures were choppy as participants digested the weak Chinese data and the PBoC's rate cuts.
Highlights for the day include:
UK Unemployment
Swedish CPI
German & EZ ZEW
US Import & Export Prices
Retail Sales
Business Inventories
Canadian CPI
Speech from Fed's Kashkari
Supply from UK & Germany
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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