Monday 28th November 2022: Asian markets red across

Global Markets:

• Asian Stock Markets : Nikkei down 0.55%, Shanghai Composite down 1.17%, Hang Seng down 2.14%, ASX down 0.42%
• Commodities : Gold at $1751.05 (-0.17%), Silver at $21.28 (-0.72%), Brent Oil at $81.25 (-2.94%), WTI Oil at $74.00 (-2.99%)
• Rates : US 10-year yield at 3.650, UK 10-year yield at 3.134, Germany 10-year yield at 1.966

News & Data:

• (NZD) Retail Sales q/q 0.40% vs 0.50% expected
• (EUR) German ifo Business Climate 86.3 vs 85 expected

Markets Update:

Asian stock markets are trading mostly lower on Monday, following the mixed cues from Wall Street on Friday, as traders reacted to the growing unrest in China amid the zero-COVID policy with record-high domestic daily Covid-19 cases and the unprecedented COVID restrictions in several cities in China. Traders also again refrained from making significant moves amid a lack of other major triggers, even as they remain optimistic about slower interest rate hikes. A speech by US Federal Reserve Chair Jerome Powell will likely attract attention along with the Fed’s Beige Book as traders look for further clues about the outlook for interest rates.

The Japanese stock market is significantly lower on Monday, extending the losses in the previous session, with the Nikkei 225 falling below the 28,100 level, with weakness across most sectors. The Australian stock market is modestly lower on Monday, giving up some of the gains in the previous four sessions, with the benchmark S&P/ASX 200 staying above the 7,200 level. Hong Kong stocks led losses in a negative Asia-Pacific session on Monday amid unrest in China over its continued zero-Covid policy.

The offshore yuan weakened sharply against the dollar after ending last week around 7.20 per dollar. West Texas Intermediate crude futures, the U.S. benchmark for oil, dipped around 3% to the lowest levels since Dec. 2021.

Upcoming Events:

Monday, November 28, 2022   

• 02:00 PM GMT – (EUR) ECB President Lagarde Speaks
• 05:00 PM GMT – (USD) FOMC Member Bullard Speaks

Tuesday, November 29, 2022   

• 01:30 PM GMT – (CAD) GDP m/m
• 03:00 PM GMT – (GBP) BOE Gov Bailey Speaks
• 03:00 PM GMT – (USD) CB Consumer Confidence

Wednesday, November 30, 2022   

• 10:00 AM GMT – (EUR) CPI Flash Estimate y/y
• 10:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
• 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
• 01:30 PM GMT – (USD) Prelim GDP q/q
• 03:00 PM GMT – (USD) JOLTS Job Openings
• 03:00 PM GMT – (USD) Pending Home Sales m/m
• 06:30 PM GMT – (USD) Fed Chair Powell Speaks

Thursday, December 01, 2022   

• 07:30 AM GMT – (CHF) CPI m/m
• 01:30 PM GMT – (JPY) BOJ Gov Kuroda Speaks
• 01:30 PM GMT – (USD) Core PCE Price Index m/m
• 01:30 PM GMT – (USD) Unemployment Claims
• 03:00 PM GMT – (USD) ISM Manufacturing PMI

Friday, December 02, 2022   

• 02:40 AM GMT – (AUD) RBA Gov Lowe Speaks
• 02:40 AM GMT – (EUR) ECB President Lagarde Speaks
• 04:30 AM GMT – (NZD) RBNZ Gov Orr Speaks
• 01:30 PM GMT – (CAD) Employment Change
• 01:30 PM GMT – (CAD) Unemployment Rate
• 01:30 PM GMT – (USD) Average Hourly Earnings m/m
• 01:30 PM GMT – (USD) Non-Farm Employment Change
• 01:30 PM GMT – (USD) Unemployment Rate