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Asian equities kicked the week off in an indecisive tone with focus on Chinese Mfg. PMI and North Korean Tensions

USD-index attempted to nurse recent losses and recover from its lowest level in 15-months, with the greenback notably regaining lost ground against CAD

Looking ahead, highlights include Eurozone CPI, Chicago PMI, Pending Home Sales

ASIA

Asia equity markets traded mixed ahead of this week’s key risk events and as participants digested Chinese Manufacturing PMI and further...
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Key Events: -

Monday:               Eurozone CPI (Jul, P), China Official PMIs (Jul)

Tuesday:              RBA MonPol Decision, Eurozone GDP (Q2, Initial)                                                                                                   

Wednesday:        

Thursday:            BoE MonPol...
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FEDERAL RESERVE

  • While rates were kept unchanged, and the FOMC hinted that balance sheet normalisation could begin ‘relatively’ soon, it was the central bank’s tweak to its views on inflation which were seen as dovish, dragging the probability of another Fed hike in 2017 to just over 50% from around 61% before the Fed’s update.
  • Previously, the Fed had...
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Asian equities trade lower in the final trading session of the week with underperformance in the ASX (-1.5%)

FX markets saw the USD-index languish near its worst levels in over a year and below 94.00

Looking ahead, highlights include regional and national German CPI, US GDP and Fed’s Kashkari

ASIA

Asia equity markets traded negative across the board following the indecisive tone on Wall St. where tech stocks underperformed as the Nasdaq Comp pulled back from record levels, while data...
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FOMC kept rates on hold as Exp., updated guidance on balance sheet normalisation and perceived to be dovish on inflation

Market reaction led to a softer USD, yields and upside in gold with sentiment bolstering Asia-Pac equities

Looking ahead, highlights include US Durables, Wholesale Inventories and Weekly Jobs

FOMC DECISION

FOMC held rates between 1.00-1.25%, as expected and said balance sheet normalisation is to take place ‘relatively soon’.

On inflation, the Fed said...
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Asian equities were mostly positive overnight as all-time highs on Wall Street bolstered sentiment

AUD/USD broke below 0.7900 amid downbeat domestic inflation data and comments from RBA’s Lowe

Looking ahead, highlights include UK GDP, US New Home Sales, DoEs and ECB’s Lautenschlaeger

ASIA

Asia equity markets were mostly higher following a record setting day on Wall St. where the S&P 500 and NASDAQ posted fresh all-time highs as earnings buoyed sentiment, with gains led by strength in...
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Asian equities traded with little direction after a mixed lead from Wall St. with newsflow and macro events once again light overnight

FX markets were mostly indecisive with the USD-index failing to hold above 94.00. Comments by ECB’s Mersch provided mild EUR support

Looking ahead, highlights include German IFO, US APIs and BoE’s Haldane

ASIA

Asia stocks maintained the mixed tone seen on Wall St. where earnings remained in focus and tech outperformed, which pushed the Nasdaq to...
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Asian equities traded with little in the way of firm direction with newsflow light overnight as participants await key risk events

FX markets saw the USD remaining subdued which pushed GBP/USD back above 1.3000 and EUR/USD closer to 1.1700

Looking ahead, highlights include Eurozone and US PMIs, US Existing Home Sales

GLOBAL

IMF affirmed 2017 global GDP growth at 3.5% and 2018 at 3.6%. (Newswires)

- Maintained 2017 and 2018 US growth forecasts at 2.1% for both years.

-...
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RBA speakers temper AUD appreciation

Asian bourses somewhat directionless to close the week

Looking ahead, highlights include Canadian CPI

ASIA

Asia equity markets traded marginally in the red, following the lacklustre close on Wall St. amid a slew of earnings releases which were ultimately mixed. ASX 200 (-0.8%) underperformed, led by the soft resources, metals and energy sectors, whilst Nikkei 225 (-0.3%) also traded in the red to conform to the tone in the region, as JPY’s...
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BoJ keeps monetary policy on hold and pushes back inflation goal as expected

AUD retraces jobs gains as the 0.8000 level holds firm.

Looking ahead, highlights include UK retail sales, ECB monetary policy decision.

Bank of Japan:

Kept rates at -0.10%, 10yr JGB yield target at 0.00% and annual pace of JGB holdings at JPY 80tln.

Increased Real GDP forecasts for FY17, 18 and 19.

Decreased Core CPI forecasts for FY17, 18 and 19

ASIA

Asia...
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  • All rates and the current pace of asset purchases are expected to be left unchanged.
  • There is a slight chance the ECB may adjust guidance on asset purchases following recent source reports.
  • Draghi may reiterate his most recent comments made at the Sintra Forum in his press conference.

 

RATE/ASSET PURCHASE EXPECTATIONS

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  • Asian equities traded with marginal gains overnight in what was a fairly quiet session
  • Slight profit taking observed in EUR while USD/JPY consolidates above 112.00
  • Looking ahead, highlights include US Building Permits, Housing Starts and DoE Crude Report

ASIA

Asia traded mixed, following a similar Wall St. lead, where Goldman Sachs’ quarterly revenue weighed on...
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      • USD-index and Asian equities drop amid fading hopes of US reforms.
      • Soft NZ CPI pushes back rate hike expectations for the RBNZ
      • Looking ahead, highlights include UK CPI, German ZEW survey and API Crude...
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  • Asian equities higher following the record closes in the US with exception of China amid a 5% drop in the ChiNext.
  • USD continued to hover around 10-month lows after Friday’s soft US data.
  • Looking ahead highlights include Eurozone CPI (final readings).

ASIA

Asia equity markets somewhat recovered from the early volatility in China to approach the close mostly higher after Friday’s gains...
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Key Events: -

Monday:             China GDP (Q2), Eurozone CPI (Jun, F), New Zealand CPI (Q2)

Tuesday:            UK Inflation (Jun), RBA Meeting Minutes (Jul)                                                                                                

Wednesday:      

Thursday:           ECB, BoJ, UK Retail Sales (Jun) Australian Labour Market Report (Jun)...
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FEDERAL RESERVE (FED)

• While most of Fed Chair Janet Yellen’s dual testimonies to the House and Senate generally toed the line, her comments hinted at downside risks to the Fed’s projection of the longer-term federal funds rate (currently between 2.80% and 3.00%, and will be updated next at its September meeting).

• “The neutral level of the federal funds rate is likely to remain close to zero in real terms over the medium term. If that is the case, we would not have much more...
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  • Asian equities traded with little in the way of firm direction as markets await a slew of tier 1 US data releases later in the session
  • FX markets also traded in a tentative manner with outflows from safe-haven JPY leading to further upside in USD/JPY
  • Looking ahead, highlights include US CPI, retail sales, industrial output, Uni. Of Michigan and Fed’s...
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  • Asian equities traded mostly higher after a firm Wall St close which saw the DJIA post record highs with Chinese data supporting domestic bourses
  • BoE’s McCafferty said that BoE should consider unwinding its QE programme earlier than planned
  • Looking ahead, highlights include IEA oil market...
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  • Asian equities traded mixed following a similar lead from Wall Street with political tension mounting amid the Trump Jr email revelations
  • In FX, mild USD pressure in Asia saw USD/JPY slip with much of this stemming from yesterday’s slip in US yields
  • Looking ahead, highlights include the UK jobs report, OPEC monthly report, BoC...
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  • Asian equities traded with little in the way of firm direction with newsflow once again on the light side overnight
  • FX markets saw USD/JPY continue its ascent, reaching 4-month highs while NZD underperformed
  • Looking ahead, highlights include US JOLTS, APIs, BoE’s Haldane, Broadbent, ECB’s Coeure, Constancio, Fed’s Brainard and Kashkari
  • ...
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Key Events: -

Monday: Chinese Inflation Data (Jun)

Tuesday:

Wednesday: Fed Chair Yellen testifies to the US House Financial Services Committee, Bank of Canada Monetary Policy Decision, UK Labour Market Data (May/Jun)

Thursday: Chinese Trade Balance (Jun)

Friday: US CPI (Jun), US Retail Sales (Jun)

North America: -

The major...
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  • Asian equities have kicked the week off mostly higher with the Nikkei 225 lifted by a softer JPY. Chinese CPI prints in-line
  • UK Press attention has been placed on reports suggesting that PM May will seek opposition support in pushing tspanough Brexit legislation
  • Looking ahead, highlights include Fed’s Williams

ASIA

The start of a new week saw Asian bourses...
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FEDERAL RESERVE (FED)

• Attention this week will be on the Q&A part of Fed chair Janet Yellen’s semi-annual testimony to Congress (House Financial Services Committee on 12 July and Senate Banking Committee the next day). The Fed’s Monetary Policy Report, released Friday, provided little new information, reiterating gradual hikes, and gradual reduction of the balance sheet when it begins later this year. Indeed, the report largely echoed recent comments from Fed policymakers, as well...
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  • Asian equities traded lower overnight amid spill-over selling from global counterparts. BoJ took action on rising Japanese yields
  • USD-index was contained below 96.00. Precious metals pressured by a flash crash in silver (said to be caused by a fat finger)
  • Looking ahead, highlights include UK mfg and industrial production, US and Canadian jobs, ECB’s...
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BoE's McCafferty, who dissented at the June Monetary Policy Meeting, speaks to RANsquawk's Anthony Barton about the slowing of the UK economy on Iain Dale's LBC radio show, 6th July 2017. Have a listen to the conversation below:

[playlist artists="false" images="false" ids="790"]
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Asia equity markets begin the week on the front-foot as the region reacts to the US-China "Phase 1" trade deal, wit… https://t.co/lJVaKJy53Z