Global Markets:
- Asian Stock Markets : Nikkei down 0.76%, Shanghai Composite down 4.50%, Hang Seng down 2.04%, ASX down 0.69%
- Commodities : Gold at $1807.25 (-0.36%), Silver at $19.64 (-0.63%), Brent Oil at $43.51 (-0.64%), WTI Oil at $40.80 (-0.97%)
- Rates : US 10-year yield at 0.622, UK 10-year yield at 0.155, Germany 10-year yield at -0.448
News & Data:
- (GBP) Claimant Count Change -28.1K vs 250.0K expected
- (CNY) GDP q/y 3.20% vs 2.20% expected
- (AUD) Unemployment Rate 7.40% vs 7.20% expected
- (AUD) Employment Change 210.8K vs 106.0K expected
- (NZD) CPI q/q -0.50% vs -0.50% expected
- (USD) Crude Oil Inventories -7.5M vs -1.3M expected
- (CAD) Overnight Rate 0.25% vs 0.25% expected
- China GDP: economy avoids recession with second-quarter growth of 3.2 per cent amid coronavirus recovery
Markets Update:
Asian stock markets are mostly lower on Thursday despite the positive cues overnight from Wall Street and data showing that China’s economy rebounded more than expected in the second quarter. Investors remained cautious due to the rising number of coronavirus cases worldwide, including a record single-day spike in new COVID-19 cases in the U.S. Worries about rising tensions between the U.S. and China also dampened sentiment.
In Japan, the Nikkei 225 dipped 0.8% while the Topix index ended its trading day 0.7% lower. Mainland Chinese stocks led losses regionally as they plunged on the day, with the Shanghai composite down 4.5% while the Shenzhen component plummeted 5.4%. Hong Kong’s Hang Seng index declined 2%, as of its final hour of trading. Over in Australia, the S&P/ASX 200 finished its trading day 0.7% lower.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.13 after touching an earlier low of 95.999. In the currency market the Australian dollar, the New Zealand dollar, and the Chinese yuan all fell against the U.S. dollar amid rising risk aversion.
Upcoming Events:
- 11:45 AM GMT – (EUR) Main Refinancing Rate
- 11:45 AM GMT – (EUR) Monetary Policy Statement
- 12:30 PM GMT – (CAD) ADP Non-Farm Employment Change
- 12:30 PM GMT – (EUR) ECB Press Conference
- 12:30 PM GMT – (USD) Core Retail Sales m/m
- 12:30 PM GMT – (USD) Retail Sales m/m
- 12:30 PM GMT – (USD) Philly Fed Manufacturing Index
- 12:30 PM GMT – (USD) Unemployment Claims
