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Global Markets:

• Asian Stock Markets : Nikkei up 1.33%, Shanghai Composite up 0.78%, Hang Seng up 0.55%, ASX up 1.43%
• Commodities : Gold at $1785.85 (+0.26%), Silver at $18.13 (+0.38%), Brent Oil at $41.45 (-0.96%), WTI Oil at $39.23 (-1.18%)
• Rates : US 10-year yield at 0.635, UK 10-year yield at 0.152, Germany 10-year yield at -0.473

News & Data:

• (NZD) ANZ Business Confidence -34.4 vs -33 previous
• (CNY) Non-Manufacturing PMI 54.4 vs 53.3 expected
• (CNY) Manufacturing PMI 50.9 vs 50.4 expected
• (USD) Pending Home Sales m/m 44.30% vs 18.90% expected
• RBA’s Debelle: Bond Purchases Not Posing Excessive Inflation Risk
• Powell says recovery path is ‘extraordinarily uncertain’ amid efforts to control virus

Markets Update:

Asian stock markets are in positive territory on Tuesday following the strong gains overnight on Wall Street as investor sentiment was bolstered by upbeat U.S. housing data and hopes of more stimulus measures, which offset worries about the sharp spikes in new coronavirus cases in the U.S. and other parts of the world. Data showing that China’s manufacturing sector expanded more than expected in June also boosted stocks.

The Japanese market is notably higher and the safe-haven yen weakened following the overnight gains on Wall Street. The Nikkei 225 in Japan rose 1.3%, following its more than 2% slide on Monday. Mainland Chinese stocks were also higher on the day, with the Shenzhen component jumping 2% while the Shanghai composite was up 0.8%. Hong Kong’s Hang Seng index advanced 0.6%. The Australian market is rising following the positive cues from Wall Street.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.66 after earlier touching a low of 97.389.

In currency markets, the dollar held onto gains against the yen and the Swiss franc as the recent increase in coronavirus infections supported safe-haven demand for the greenback. The yield on benchmark 10-year Treasury notes was little changed at 0.6348% in Asia as traders braced for U.S. non-farm payrolls data on Thursday, which is forecast to show an improving labour market.

Upcoming Events:

• 12:30 PM GMT – (CAD) GDP m/m
• 01:45 PM GMT – (USD) Chicago PMI
• 02:00 PM GMT – (USD) CB Consumer Confidence
• 04:30 PM GMT – (USD) Fed Chair Powell Testifies

The German chambers of industry and commerce, DIHK, shares their latest outlook of the economy
– V-shaped recovery is likely “off the table”
– Half of German companies sees return to normalcy in 2021 at the earliest
The thing about moving on from the crisis is that the impact will continue to reverberate the longer it takes for

The lockdown will cover 10 areas/postcodes and affect some 320,000 people
Victorian state premier, Daniel Andrews said that:
ICYMI, the earlier proved to be a bit of a drag for risk sentiment as we began the session, weighing on the aussie and risk in general. AUD/USD is still seen lower now at around 0.6855 just off

Comments by the Chinese foreign ministry
US secretary of state, Mike Pompeo, also tweeted out this:
“Today, the United States is ending exports of @StateDeptPM controlled U.S. origin defense equipment and sensitive @CommerceGov controlled dual-use technologies to Hong Kong. If Beijing now treats Hong Kong as “One Country, One System,” so must we.”
As for China’s “retaliatory measures”,

Latest data released by the KOF Swiss Economic Institute – 30 June 2020
– 53.2
The data here measures the future trends of overall economic activity in the Swiss economy.

Latest data released by the National Statistics Institute – 30 June 2020
– GDP -4.1% vs -4.1% y/y prelim
The preliminary release can be found . No changes to the initial estimates as this just reaffirms the biggest quarterly contraction in the Spanish economy, which will be exceeded by the drop in Q2 amid the fallout from

Comments by Leicester City mayor, Peter Soulsby
– Government has not yet defined the boundary of the city lockdown
– It has been very difficult to get data out of the government
This just adds to the lack of comforting news from the UK in dealing with the outbreak in Leicester, but let’s not forget that there is

Latest data released by INSEE – 30 June 2020
– +0.4%
– CPI -0.1% vs +0.3% m/m expected
– Prior +0.1%
That is a bit of a surprise miss after the inflation reports we saw from Spain and Germany yesterday, but I guess all of this is still largely muddied by the impact of the coronavirus outbreak in

Latest data released by the Federal Statistics Office – 30 June 2020
– -19.9%; revised to -18.8%

Inflation or deflation?
Reuters conducted a poll of 161 economists asking what is the greatest risk once the pandemic subsides. Is it inflation due to trade friction and shifting supply chains or is it deflation as a result of weaker demand? The results were as follows with global breakdowns on the right hand side:

Comments by UK health secretary, Matt Hancock
As the UK government seeks to ease lockdown restrictions and reopen the economy, a localised outbreak in Leicester is proving to be a bit of a thorn in the side for now.

Latest data release by ONS – 30 June 2020
– GDP -1.7% vs -1.6% y/y prelim
– Private consumption % vs -1.7% q/q prelim
– Government spending % vs -2.6% q/q prelim
Slight delay in the release by the source. The preliminary report can be found .