Mon, Jun 21, 2021 @ 05:03 GMT

European Open Briefing

Global Markets:

  • Asian stock markets: Nikkei down 0.55 %, Shanghai Composite gained 0.05 %, Hang Seng rose 0.40 %, ASX 200 declined 0.10 %
  • Commodities: Gold at $1217 (+0.10 %), Silver at $17.51 (-0.15 %), WTI Oil at $52.80 (-0.65 %), Brent Oil at $55.65 (-0.50 %)
  • Rates: US 10 year yield at 2.51, UK 10 year yield at 1.19, German 10 year yield at 0.32

News & Data:

  • China Trade Balance (CNY) (Feb): -60.4bn (est 172.50B, prev 354.50B)
  • China Exports YoY (CNY) (Feb): 4.2% (est 14.60%, prev 15.90%)
  • China Imports YoY (CNY) (Feb): 44.7% (est 23.10%, prev 25.20%)
  • Japan GDP Nominal SA (QoQ) (Q4 F): 0.40% (est 0.50%, prev 0.30%)
  • Japan GDP Annualized SA (QoQ) (Q4 F): 1.20% (est 1.50%, prev 1.00%)
  • Japan GDP Private Consumption (QoQ) (Q4 F): 0.0% (est 0.00%, prev 0.00%)
  • Japan GDP Business Spending (QoQ) (Q4 F): 2.0% (est 1.70%, prev 0.90%)
  • Japan BoP Current Account Balance (JPY) (Jan): 65bn (Est 270.0B, prev 1112.2B
  • Japan Trade Balance BoP Basis (JPY) (Jan): -853.4bn (Est -800.2B, prev 806.8B)
  • Asian stocks slip as caution sets in; debt yields firm – RTRS
  • Pharma, bank stocks pull Wall Street lower – RTRS

Markets Update:

Risk appetite decreased in Asia. Most of the major stock markets are down on the day, led by the Nikkei 225, which lost more than 0.50 %. Meanwhile, the Japanese Yen rose against most other currencies overnight.

The main event in Asia was the release of Chinese trade data. The trade balance showed a deficit, while the market was expecting a surplus of over 170 billion Yuan. However, the big increase in imports was caused by the Chinese New Year holiday and has only a temporary effect.

Volatility in the major currency pairs has been low in the past few trading days. Traders are waiting for the ECB rate decision tomorrow and the US employment data on Friday. The market is not expecting any changes from the ECB, but is looking for hints if the QE programme could end earlier.

Upcoming Events:

  • 07:00 GMT – German Industrial Production
  • 07:45 GMT – French Trade Balance
  • 08:15 GMT – Swiss CPI
  • 13:15 GMT – US ADP Nonfarm Employment Change
  • 15:30 GMT – US Crude Oil Inventories
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