27th June 2022 Monday: Markets gain as investors hunt for bargains

Global Markets:

• Asian Stock Markets : Nikkei up 1.43%, Shanghai Composite up 0.88%, Hang Seng up 2.34%, ASX up 1.94%
• Commodities : Gold at $1837.70 (+0.40%), Silver at $21.52 (+1.69%), Brent Oil at $109.50 (+0.37%), WTI Oil at $107.88 (+0.24%)
• Rates : US 10-year yield at 3.162, UK 10-year yield at 2.356, Germany 10-year yield at 1.480

News & Data:

• (USD) Revised UoM Consumer Sentiment 50 vs 50.2 expected
• (EUR) German ifo Business Climate 92.3 vs 92.8 expected
• (GBP) Retail Sales m/m -0.50% vs -0.60% expected

Markets Update:

Asian stock markets are trading mostly higher on Monday, following the broadly positive cues from global markets on Friday, with energy, technology and financial stocks leading the way higher. Traders also continued to pick up stocks at relatively reduced levels following recent weakness amid concerns about a recession as major central banks move ahead with aggressive rate hikes to tame surging inflation.

The Japanese stock market is sharply higher on Monday boosted by exporters, energy and technology stocks. Traders also continue to pick up stocks at a bargain after the recent sell-off. The Australian stock market is sharply higher on Monday, with strength across most sectors, particularly financials, technology, materials and energy stocks. Mainland Chinese markets also gained. The Shanghai Composite climbed 0.9%, and the Shenzhen Component rose 1.1%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.923. Crude oil prices rose sharply on Friday on optimism for continued high demand for energy and tight supply.

Upcoming Events:

Monday, June 27, 2022   

• Day 2 – (All) G7 Meetings
• 12:30 PM GMT – (USD) Core Durable Goods Orders m/m
• 12:30 PM GMT – (USD) Durable Goods Orders m/m
• 02:00 PM GMT – (USD) Pending Home Sales m/m

Tuesday, June 28, 2022   

• 08:00 AM GMT – (EUR) ECB President Lagarde Speaks
• Day 3 – (All) G7 Meetings
• 02:00 PM GMT – (USD) CB Consumer Confidence
• 02:00 PM GMT – (USD) Richmond Manufacturing Index

Wednesday, June 29, 2022   

• Tentative – (NZD) RBNZ Statement of Intent
• All Day – (EUR) German Prelim CPI m/m
• 10:30 AM GMT – (USD) FOMC Member Mester Speaks
• 12:30 PM GMT – (USD) Final GDP q/q
• 01:30 PM GMT – (EUR) ECB President Lagarde Speaks
• 01:30 PM GMT – (GBP) BOE Gov Bailey Speaks
• 01:30 PM GMT – (USD) Fed Chair Powell Speaks

Thursday, June 30, 2022   

• 12:30 PM GMT – (CAD) GDP m/m
• 12:30 PM GMT – (USD) Core PCE Price Index m/m
• 12:30 PM GMT – (USD) Unemployment Claims

Friday, July 01, 2022   

• 02:00 PM GMT – (USD) ISM Manufacturing PMI