Wednesday 15th May: Asian markets on the path of recovery

Global Markets:

• Asian Stock Markets : Nikkei up 0.58%, Shanghai Composite up 2.09%, Hang Seng up 0.96%, ASX up 0.71%
• Commodities : Gold at $1295.15 (-0.09%), Silver at $14.81 (-0.03%), Brent Oil at $71.07 (-0.24%), WTI Oil at $61.37 (-0.66%)
• Rates : US 10-year yield at 2.417, UK 10-year yield at 1.106, Germany 10-year yield at -0.073

News & Data:

• (EUR) German Prelim GDP q/q 0.40% vs 0.40% expected
• (CNY) Industrial Production y/y 5.40% vs 6.50% expected
• (CNY) Fixed Asset Investment ytd/y 6.10% vs 6.40% expected
• (AUD) Wage Price Index q/q 0.50% vs 0.60% expected
• (AUD) Westpac Consumer Sentiment 0.60% vs 1.90% previous
• (EUR) German ZEW Economic Sentiment -2.1 vs 5.1 expected
• (GBP) Unemployment Rate 3.80% vs 3.90% expected
• (GBP) Average Earnings Index 3m/y 3.20% vs 3.40% expected

Markets Update:

Asian stock markets are mostly higher on Wednesday following the positive cues overnight from Wall Street, as markets staged a recovery attempt after recent steep losses. Nevertheless, lingering worries about U.S.-China trade tensions weighed on investor sentiment.

U.S. President Donald Trump has continued to express confidence the Chinese will yield to U.S. demands, repeatedly arguing that the U.S. is in a stronger position than China in the negotiations.

Mainland Chinese shares advanced by the afternoon, with the Shanghai composite adding 2.10% and the Shenzhen component rising 2.6%. In Hong Kong, the Hang Seng index added 1%. Japan’s Nikkei 225 rose 0.6% in afternoon trade, while the Topix index added 0.6%. Japanese automaker Nissan Motor saw its shares plummet more than 7% after the company posted 2018 fiscal earnings that were their lowest level in 11 years. In South Korea, the Kospi rose 0.5% as shares of LG Chem jumped more than 2%.

The dollar index against a basket of six major currencies was nearly flat at 97.524 after gaining 0.2% the previous day.

In commodities, U.S. crude futures were down 0.76% at $61.31 per barrel after the American Petroleum Institute (API) reported a bigger-than-expected build in crude oil inventory. Brent and U.S. crude futures had surged the previous day after top exporter Saudi Arabia said explosive-laden drones launched by a Yemeni-armed movement aligned to Iran had attacked facilities belonging to state oil company Aramco.

Upcoming Events:

• 09:15 AM GMT – (EUR) German Buba President Weidmann Speaks
• 01:30 PM GMT – (CAD) Manufacturing Sales m/m
• 01:30 PM GMT – (USD) Building Permits
• 01:30 PM GMT – (USD) Philly Fed Manufacturing Index
• 04:15 PM GMT – (CAD) BOC Gov Poloz Speaks
• 05:15 PM GMT – (USD) FOMC Member Brainard Speaks
• 06:30 PM GMT – (GBP) MPC Member Haskel Speaks
• Tentative – (USD) Treasury Currency Report
• &more…