Tuesday 11th August: Asian markets mimic Wall Street

content provided with permission by IC MArkets

Global Markets:
Asian Stock Markets : Nikkei up 1.88%, Shanghai Composite down 1.15%, Hang Seng up 2.20%, ASX up 0.47%

Commodities : Gold at $1997.00 (-1.64%), Silver at $28.22 (-3.55%), Brent Oil at $45.41 (+0.93%), WTI Oil at $42.47 (+1.26%)

Rates : US 10-year yield at 0.581, UK 10-year yield at 0.144, Germany 10-year yield at -0.521

News & Data:
(GBP) Average Earnings Index 3m/y -1.20% vs -1.20% expected
(GBP) Unemployment Rate 3.90% vs 4.20% expected
(GBP) Claimant Count Change 94.4K vs 9.7K expected
(JPY) Economy Watchers Sentiment 41.1 vs 40 expected
(AUD) NAB Business Confidence -14 vs 1 previous
Low Growth is the “New Normal” for the UK and Other Western Economies
Japan’s 2020 1st half current account surplus lowest in over 5 yrs

Markets Update:
Asian stock markets are rising on Tuesday following the mostly positive cues from Wall Street and amid hopes for more coronavirus-related stimulus in the U.S. Nevertheless, investors also kept an eye on rising tensions between the U.S. and China after Beijing imposed sanctions on eleven U.S. citizens in retaliation for similar measures by the U.S. earlier.
Chinese mainland shares gave up earlier gains to finish lower: The Shanghai composite fell 1.2%, the Shenzhen component was lower by 1.4%. The Nikkei 225 advanced 1.9% and the Topix index was up 2.5%. The Hang Seng index in Hong Kong was up 2.2% in late-afternoon trade but the new technology index slid around 1%. South Korea’s Kospi index gained 1.3%. Singapore’s Straits Times index gave up earlier gains to trade down 0.4%.

The U.S. dollar index, which measures the greenback against a basket of its peers, traded at 93.655, coming off an earlier high around 93.724. Safe havens were under gentle pressure across the board. U.S. bond market extended a recent selloff, with the yield on benchmark 10-year Treasuries at a two-week high of 0.5870%. Oil prices gained Tuesday during Asian trading hours.

Upcoming Events:

09:00 AM GMT – (EUR) ZEW Economic Sentiment
09:00 AM GMT – (EUR) German ZEW Economic Sentiment
10:00 AM GMT – (USD) NFIB Small Business Index
12:15 PM GMT – (CAD) Housing Starts
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
10:45 PM GMT – (NZD) Visitor Arrivals m/m
11:50 PM GMT – (JPY) M2 Money Stock y/y