Friday 10th July: COVID anxiety rules markets

Global Markets:

• Asian Stock Markets : Nikkei down 1.06%, Shanghai Composite down 1.95%, Hang Seng down 2.09%, ASX down 0.61%
• Commodities : Gold at $1804.85 (+0.06%), Silver at $19.01 (+0.26%), Brent Oil at $41.77 (-1.37%), WTI Oil at $38.94 (-1.72%)
• Rates : US 10-year yield at 0.589, UK 10-year yield at 0.142, Germany 10-year yield at -0.476

News & Data:

• (CNY) New Loans 1810B vs 1800B expected
• (CNY) M2 Money Supply y/y 11.10% vs 11.10% expected
• (EUR) French Industrial Production m/m 19.60% vs 15.20% expected
• (JPY) PPI y/y -1.60% vs -2.00% expected
• (USD) 30-y Bond Auction 1.33|2.5 vs 1.45|2.3 previous
• (USD) Natural Gas Storage 56B vs 60B expected
• (USD) Final Wholesale Inventories m/m -1.20% vs -1.20% expected
• (USD) Unemployment Claims 1314K vs 1375K expected
• (CAD) Housing Starts 212K vs 185K expected
• BOJ: All 9 Regions Cut Econ Assessment From April
• S. town prints own currency to boost coronavirus relief

Markets Update:

Asian stock markets are in negative territory on Friday as the resurgence of new coronavirus infections in the U.S. and other parts of the world stoked concerns about the re-imposition of lockdown measures and dampened hopes of a global economic recovery. Investors also turned cautious ahead of the corporate earnings season beginning next week.

The Shanghai composite was down 1.9% , the Shenzhen composite was down 0.3%. The Nikkei 225 in Japan dropped 1.1%. Hong Kong’s Hang Seng Index fell 2.1% in late-afternoon trade. Reuters reported the city will suspend all schools from Monday following a recent spike in coronavirus cases. Australia’s benchmark ASX 200 ended the session down 0.6% as lower commodity prices dragged down resources stocks.

Oil prices fell Friday during Asian hours following more than 2% declines on Thursday. In the currency market, the U.S. dollar index, which measures the greenback against a basket of its peers, rose 0.23% to 96.922.

Upcoming Events:

• All Day – (EUR) ECOFIN Meetings
• 12:30 PM GMT – (CAD) Employment Change
• 12:30 PM GMT – (CAD) Unemployment Rate
• 12:30 PM GMT – (USD) Core PPI m/m
• 12:30 PM GMT – (USD) PPI m/m
• 01:30 PM GMT – (GBP) CB Leading Index m/m