Monday 2nd December: Asian markets gain on supportive data

Global Markets:

• Asian Stock Markets : Nikkei up 1.01%, Shanghai Composite up 0.05%, Hang Seng up 0.28%, ASX up 0.24%
• Commodities : Gold at $1466.25 (-0.44%), Silver at $17.01 (-0.57%), Brent Oil at $61.26 (+1.27%), WTI Oil at $56.06 (+1.61%)
• Rates : US 10-year yield at 1.810, UK 10-year yield at 0.697, Germany 10-year yield at -0.359

News & Data:

• (CNY) Caixin Manufacturing PMI 51.8 vs 51.5 expected
• (AUD) Company Operating Profits q/q -0.80% vs 1.00% expected
• (AUD) Building Approvals m/m -8.10% vs -1.00% expected
• (CNY) Non-Manufacturing PMI 54.4 vs 53.1 expected
• (CNY) Manufacturing PMI 50.2 vs 49.5 expected
• (CAD) RMPI m/m -1.90% vs -1.90% expected
• (CAD) GDP m/m 0.10% vs 0.10% expected
• (EUR) CPI Flash Estimate y/y 1.00% vs 0.80% expected
• Germany Pulls Back from Recent Overt Criticism Of ECB
• AU Job Ads slide further in November

Markets Update:

Asian stock markets are mostly higher on Monday as official data released over the weekend showed that China’s factory activity returned to growth in November for the first time in seven months.

A private survey of Chinese factory activity in November, released on Monday, also came in stronger than expected. The data helped offset worries that tensions between the U.S. and China over Hong Kong could impact the ongoing trade talks. Meanwhile, China’s Global Times reported that China wants the U.S. to remove existing tariffs on Chinese goods as part of a phase one trade deal.

Japanese stocks led gains among major markets in the region, with the Nikkei 225 adding 1% in afternoon trade, as shares of index heavyweight and robot maker Fanuc gained 1.5%. The Topix index also rose 0.9%. Mainland Chinese stocks rose by the afternoon, with the Shanghai composite gaining 0.1%. Hong Kong’s Hang Seng index also rose 0.3%. Shares in Australia also edged higher as the S&P/ASX 200 gained 0.2%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.323 after spiking to levels above 98.4 late last week.

Oil prices bounced back a tad after a big slump on Friday on record high U.S. crude production. The market drew support from expectations that OPEC and its allies are likely to extend existing oil output cuts when they meet this week , with non-OPEC oil producer Russia supporting Saudi Arabia’s push for stable oil prices amid the listing of state oil giant Saudi Aramco.

Upcoming Events:

Monday, December 02, 2019

• 08:15 AM GMT – (EUR) Spanish Manufacturing PMI
• 09:30 AM GMT – (GBP) Final Manufacturing PMI
• 02:00 PM GMT – (EUR) ECB President Lagarde Speaks
• 03:00 PM GMT – (USD) ISM Manufacturing PMI

Tuesday, December 03, 2019

• 12:30 AM GMT – (AUD) Current Account
• 03:30 AM GMT – (AUD) Cash Rate
• 03:30 AM GMT – (AUD) RBA Rate Statement

Wednesday, December 04, 2019

• 12:30 AM GMT – (AUD) GDP q/q
• 01:45 AM GMT – (CNY) Caixin Services PMI
• 09:30 AM GMT – (GBP) Final Services PMI
• 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
• 03:00 PM GMT – (CAD) BOC Rate Statement
• 03:00 PM GMT – (CAD) Overnight Rate
• 03:00 PM GMT – (USD) ISM Non-Manufacturing PMI
• 03:30 PM GMT – (USD) Crude Oil Inventories

Thursday, December 05, 2019

• 12:00 AM GMT – (NZD) RBNZ Gov Orr Speaks
• 12:30 AM GMT – (AUD) Retail Sales m/m
• 12:30 AM GMT – (AUD) Trade Balance
• All Day – (All) OPEC Meetings
• 01:30 PM GMT – (CAD) Trade Balance

Friday, December 06, 2019

• All Day – (All) OPEC-JMMC Meetings
• 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
• 03:00 PM GMT – (USD) Prelim UoM Consumer Sentiment
• &more…