FX & Stock market snapshots as of [14/08/2019 0340 GMT]
- In today’s Asia session, risk sensitive related pairs; AUD/JPY, GBP/JPY, EUR/JPY and USD/JPY are the worst performers after a resurgence of risk appetite was seen in yesterday’s U.S. session. The U.S. administration has delayed the implementation of the 10% tariffs on several Chinese imports; finished products such as phones, laptops and toys to take effect on 15 Dec from the earlier planned date of 01 Sep.
- Profit-taking on these JPY crosses can be attributed to weaker key economic data from China. Retail sales for Jul came in at 7.6% y/y (below expectation of 8.6% y/y) versus 9.8% y/y in Jun. Industrial production for Jul came in at 4.8% y/y (below expectation of 5.8%) versus 6.3% y/y in Jun.
- The growth rate of industrial production in China has weakened to a 17-year low on the backdrop of sluggish domestic demand and uncertainties over the on-going trade dispute between U.S. and China.
- Ahead of the European session open, most Asian stock markets are trading in the black; taking the cue from overnight gains seen in the U.S. stock markets after the U.S. administration de-escalated its trade tension with China.
- South Korea’s Kospi 200 is leading the pack with a gain of 0.94% as at Asian mid-session with outperformance seen in the Energy and Technology sectors (up by 2.7% and 1.5% respectively).
- The outlier is Australia’s ASX 200 with a small loss of -0.10% where key financials stocks underperformed. Commonwealth Bank of Australia is down by -3.2% after it goes ex-dividend. A loss of -0.3 % was seen in National Australia Bank after it reported flat growth in Q3 profit.
- The S&P 500 E-mini futures has inched down slightly by -0.20% in today’s Asia session to print a current intraday low of 2923.
- Germany GDP Q2 out later at 0600 GMT where consensus is set at -0.1 q/q & -0.3% y/y
- U.K. CPI for Jul at 0830 GMT where consensus is set at 1.9% y/y below 2.0% y/y seen in Jun for headline inflation.
*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.