
Markets Update: APAC Stocks Mostly Lower
Today's important market events:
[USD] Retail Sales / Core Retail Sales (MoM - Jun) - 14:30 CEST
[USD] Industrial Production (MoM/YoY - Jun) - 14:30 CEST
Global Markets Roundup: 18 July 2023
APAC Stocks Mostly Lower
Asian stocks were mostly lower on Tuesday, after the region failed to sustain the momentum from Wall Street, where tech and small caps outperformed.
US President Biden Weighs New Curbs on Chips
US President Biden is weighing new curbs on chips and semiconductor-making devices, according to Bloomberg. The move is aimed at countering China's growing dominance in the global chip market.
European Equity Futures Higher
European equity futures are indicative of a slightly higher open with the Euro Stoxx 50 +0.1% after the cash market closed down by 1.0% yesterday. The gains are being supported by positive sentiment in the US, where stocks are rising after the release of strong economic data.
DXY Remains Sub-100.00 The dollar index (DXY) remains below 100.00, as investors continue to weigh the risks of a global economic slowdown. The euro (EUR/USD) hovers around 1.1250, while the pound (GBP/USD) is eyeing a test of 1.31 to the upside.
The ASX 200 was subdued and the Nikkei 225 initially advancing before fading. The Hang Seng and Shanghai Composite were lower, with property stocks leading the declines in Hong Kong after the long-delayed results from the world's most indebted developer Evergrande.
US-China Relationship in Focus
The US-China relationship also remained in focus, with amicable comments in talks between US Climate Envoy Kerry and China's top diplomat Wang Yi, although this was somewhat negated by reports the US aims to propose China investment limits by the end of next month and that President Biden is weighing new curbs on chips and semiconductor-making devices.
US Equity Futures Trade Sideways
US equity futures traded sideways heading into upcoming data and earnings releases, while a report that US banks are facing tougher mortgage capital rules than Basel standards was largely ignored by futures.
FX
The dollar index (DXY) remained lacklustre at a sub-100.00 level with attention now turning to the upcoming data from the US due later including Retail Sales. The euro (EUR/USD) eked marginal gains but with price action contained around the 1.1250 level after recent ECB rhetoric provided little in the way of fresh insight. The pound (GBP/USD) gradually edged higher and looks to make another attempt at reclaiming the 1.3100 status. USD/JPY eventually trickled lower following its recent whipsawing through the 139.00 level. The antipodeans were choppy with two-way price action seen after the RBA minutes remained hawkish but also provided a bearish tone on the economy. The PBoC set the USD/CNY mid-point at 7.1453 vs exp. 7.1704 (prev. 7.1326).
Fixed Income
10yr UST futures struggled for direction following the prior day’s choppy performance. Bund futures slightly edged higher overnight after bouncing off support near the 133.00 level. 10yr JGB futures were kept afloat but with price action indecisive amid a lack of data releases and the absence of additional BoJ purchases.
Commodities Crude futures were quiet amid a lack of notable energy-related catalysts and with the rebound from support at the prior day's lows limited by the overhang from recent disappointing Chinese data. US total shale regions oil production for August is seen to decline 18k BPD to 9.399mln BPD vs 5.9k BPD rise in July, according to the EIA. Spot Gold traded marginally higher alongside a further weakening of the greenback. Copper futures were confined to within a tight range amid the mostly risk-averse mood in Asia.
Looking Ahead:
US Retail Sales
Business Inventories
Industrial Production
Canadian CPI
New Zealand CPI
Speeches from Fed's Barr
Supply from UK & Germany
Earnings from Novartis, Ocado, Morgan Stanley & Bank of America
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team