CHINA: Bond Futures Stay Calm as Markets Return from Leave.
Feb-05 02:04
- China’s bond futures showed little regard for the uncertainty abounding from the impending trade war.
- Whilst equities are down, (Hang Seng -1.15%, CSI 300 -0.30%) bonds futures are marginally lower at the open.
- China’s 10YR Bond Mar 25 future is lower by -0.05 at 109.35
- China’s 2YR Bond Mar25 future is lower by -.044 at 102.80
- Prior to the Lunar New Year Break the 10YR future had bounced on the 20-day EMA and moved higher and remains above that technical level of 109.077.
- China’s 2YR Bond future is trending below the 20-day EMA of 102.83 and is at the midpoint of it and the 50-day EMA of 102.78.
- Economic data this week has been softer with PMI Manufacturing and PMI Services weaker, but likely impacted by the earlier than expected Lunar Holidays.
- Over the coming weekend, China will release its January PPI data which is expected to show the deflationary pressures for producers remains a key issue.
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AUD: A$ Stronger But Off Intraday Highs
Jan-06 01:52
Aussie is stronger today helped by better risk appetite and softer CNH trends. AUDUSD is up 0.2% to 0.6226, off the intraday high of 0.6240. It fell to 0.6208 early in today’s trading. The USD index is off its low to be little changed.
- With the better risk tone, AUDNZD is up only 0.1% to 1.1082. However, AUDJPY is 0.4% higher at 98.17, close to the intraday high of 98.30. AUDEUR is up 0.2% to 0.6040 and AUDGBP +0.1% to 0.5008 after falling briefly below 0.5000 early in the session.
- The final December S&P Global composite PMI was revised up 0.3pp to 50.2, the third straight month at this level and signalling only slight growth in activity which is being driven by the services sector. The services PMI was revised up 0.4pp to 50.8 to be 0.3pp higher than November.
- Equities are mixed with the ASX up 0.1% and Hang Seng/CSI flat but Nikkei down 1.1% as it catches up after being closed several days. The S&P e-mini is 0.1% lower. Oil prices continue to climb with WTI +0.3% to $74.18/bbl. Copper is up 0.2% and iron ore has given up gains to be back around $99/t.
- Later the Fed’s Cook speaks. US & European December services/composite PMIs and preliminary December German CPI data are released.
MNI: CHINA PBOC CONDUCTS CNY14.1 BLN VIA 7-DAY REVERSE REPOS MON
Jan-06 01:50
- CHINA PBOC CONDUCTS CNY14.1 BLN VIA 7-DAY REVERSE REPOS MON
CANADA: Local Media Report Trudeau Will Resign This Week
Jan-06 01:39
Headlines have crossed from the Globe and Mail that Canadian PM Trudeau will resign this week. The reports note that the resignation could happen later today, but that it is expected to happen before a national caucus meeting on Wednesday (see this BBG link for more details).
