Mon, Jun 21, 2021 @ 03:59 GMT

European Open Briefing

Global Markets:

  • Asian stock markets: Nikkei up 1.40 %, Shanghai Composite gained 0.40 %, hang Seng rose 0.30 %, ASX 200 down 0.30 %
  • Commodities: Gold at $1243 (-0.90 %), Silver at $18.30 (-0.90 %), WTI Oil at $54.10 (+0.20 %), Brent Oil at $56.65 (+0.25 %)
  • Rates: US 10-year yield at 2.42, UK 10-year yield at 1.15, German 10-year yield at 0.21

News & Data:

  • Australia GDP Q4 (QoQ) 1.1% (prev -0.50%)
  • Australia GDP Q4 (YoY) 2.4% (prev 1.80%)
  • China Non-Manufacturing PMI Feb 54.2 (prev 54.6)
  • China Manufacturing PMI Feb 51.6 (prev 51.3)
  • China Caixin Manufacturing PMI Feb 51.7 (prev 51.0)
  • Japan Manufacturing PMI Feb 53.3 (prev 53.5)
  • Australia AIG Manufacturing Index Feb: 59.3 (prev 51.2)
  • South Korea Trade Balance (USD) Feb 7223m (prev 3196m)
  • Fed’s Dudley: Case for hikes is becoming more compelling
  • Fed’s Williams: Raising rates sooner leaves room for more rate hikes this year if needed
  • Fed’s Bullard: Fed closer to achieving goals today more than anytime in last 60 years

Markets Update:

The US Dollar came under pressure during the speech by US President Trump, but resumed its rally as the market switched its focus back to the hawkish comments by several Fed members. Trump failed to deliver details about his planned economic plan, but there was not much of a reaction in the stock market. S&P 500 futures were only slightly lower, and most of the Asian indices are up on the day.

Meanwhile, the Dollar remains strong as the market sees a rate hike this month as possible. EUR/USD fell from 1.0590 back to 1.0550, and USD/JPY rallied to a high of 113.60 so far. USD/CAD had a significant rally as well. The pair rose from 1.3160 in yesterday’s early NY session to a high of 1.3310 and extended gains to 1.3325 in Asia. If the focus remains on the Fed instead of Trump, the Dollar could rise further.

The Australian Dollar fell slightly amid the broad USD strength, but less than its peers. GDP data was strong and beat expectations, which supported the currency.

Upcoming Events:

  • 08:45 GMT – Italian Manufacturing PMI
  • 08:50 GMT – French Manufacturing PMI
  • 08:55 GMT – German Manufacturing PMI
  • 08:55 GMT – German Unemployment Change
  • 08:55 GMT – German Unemployment Rate
  • 09:00 GMT – Euro Zone Manufacturing PMI
  • 09:30 GMT – UK Manufacturing PMI
  • 13:00 GMT – German CPI
  • 13:30 GMT – US Core PCE Price Index
  • 13:30 GMT – US Personal Income
  • 13:30 GMT – US Personal Spending
  • 13:30 GMT – Canadian Current Account
  • 14:45 GMT – US Manufacturing PMI
  • 15:00 GMT – US ISM Manufacturing PMI
  • 15:00 GMT – Bank of Canada Interest Rate Decision
  • 15:30 GMT – US Crude Oil Inventories
  • 18:00 GMT – FOMC Member Kaplan speaks
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