Global Markets:
- Asian stock markets: Nikkei up 0.25 %, Hang Seng fell 0.75 %, ASX 200 rose 0.45 %
- Commodities: Gold at $1211 (+0.02 %), Silver at $17.51 (-0.17 %), WTI Oil at $52.70 (-0.20 %), Brent Oil at $55.40 (-0.30 %)
- Rates: US 10-year yield at 2.47, UK 10-year yield at 1.43, German 10-year yield at 0.44
News & Data:
- China Manufacturing PMI Jan: 51.3 (est. 51.2, prev. 51.4)
- China Non-Manufacturing PMI Jan: 54.6 (prev. 54.5)
- New Zealand Unemployment Rate Q4: 5.2% (est. 4.80%, prev. 4.90%)
- New Zealand Employment Change (QoQ) Q4: 0.8% (est. 0.70%, prev. 1.40%)
- New Zealand Participation Rate Q4: 70.5% (est. 70.20%, prev. 70.10%)
- Australia AIG Manufacturing Index Jan: 51.2 (prev. 55.4)
- Japan Nikkei Manufacturing PMI Jan F: 52.7 (prev. 52.8)
- South Korea Nikkei Manufacturing PMI Jan: 49 (prev. 49.4)
- South Korea Trade Balance (USD) Jan: 3200M (prev. 6800M)
- South Korea Exports (YoY) Jan: 11.2% (est. 8.70%, prev. 6.40%)
- South Korea Imports (YoY) Jan: 18.6% (est. 8.50%, prev. 8.00%)
- NIESR UK Outlook 2016 GDP Growth: 2.0% – 2017 GDP Growth: 1.7% – 2018 GDP Growth: 1.9%
Markets Update:
The US Dollar declined overnight and the Yen was in demand amid broad risk aversion in global markets. Concerns about the introduced measures by the Trump administration and uncertainty what will follow next have led to profit-taking in stocks. In the FX market, traders and investors were seeking a safe haven in the Japanese Yen.
The Euro remained bid after a strong rally in yesterday’s early NY session. Higher than expected Euro Zone inflation data led to broad EUR demand and pushed EUR/USD above 1.08. Resistance is now seen at 1.0875, and a break above could signal that the rally could extend to 1.10.
The main event today will be the Fed’s interest rate decision, and the central bank is expected to keep rates unchanged.
Upcoming Events:
- 08:45 GMT – Italian Manufacturing PMI
- 08:50 GMT – French Manufacturing PMI
- 08:55 GMT – German Manufacturing PMI
- 09:00 GMT – Euro Zone Manufacturing PMI
- 09:30 GMT – UK Manufacturing PMI
- 13:15 GMT – US ADP Nonfarm Employment Change
- 15:00 GMT – US ISM Manufacturing PMI
- 15:30 GMT – US Crude Oil Inventories
- 19:00 GMT – Federal Reserve Interest Rate Decision
- 19:00 GMT – FOMC Statement
