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Global Markets:
- Asian Stock Markets : Nikkei down 1.91%, Shanghai Composite down 0.22%, Hang Seng up 0.53%, ASX down 0.78%
- Commodities : Gold at $1790.80 (+0.17%), Silver at $23.21 (-0.42%), Brent Oil at $80.98 (-0.28%), WTI Oil at $75.89 (-0.29%)
- Rates : US 10-year yield at 3.477, UK 10-year yield at 3.273, Germany 10-year yield at 2.076
News & Data:
- (USD) Unemployment Claims 211K vs 230K expected
- (USD) Philly Fed Manufacturing Index -13.8 vs -10 expected
- (USD) Retail Sales m/m -0.60% vs -0.20% expected
- (USD) Empire State Manufacturing Index -11.2 vs -1.1 expected
- (USD) Core Retail Sales m/m -0.20% vs 0.20% expected
- (EUR) Main Refinancing Rate 2.50% vs 2.50% expected
- (GBP) Official Bank Rate 3.50% vs 3.50% expected
- (GBP) MPC Official Bank Rate Votes 7-0-2 vs 9-0-0 expected
- (CHF) SNB Policy Rate 1.00% vs 1.00% expected
- (AUD) Unemployment Rate 3.40% vs 3.40% expected
- (AUD) Employment Change 64.0K vs 19.4K expected
Markets Update:
Asia-Pacific markets traded mostly lower as recession fears grow. Disappointing U.S. retail sales for November suggested inflation is taking a toll on consumers and raising fears that the Fed’s rate hikes are tipping the economy into a recession. While the US Fed raised interest rates by 50 basis points as widely expected, the accompanying statement and the central bank’s latest projections led to worries about where rates will peak. The Fed, the Bank of England, the European Central Bank, and the Swiss National Bank, have all raised their interest rates, and most of these central banks have indicated further tightening in the coming months to rein in inflation.
The Australian stock market is notably lower on Friday, extending the losses in the previous session, with the benchmark S&P/ASX 200 falling below the 7,200 level, with weakness across most sectors, led by technology, financial and gold miner stocks, as rising concerns about global economic growth due to surging interest rates dented sentiment. Japan’s Nikkei 225 index sank nearly 2% on Friday, with industrial stocks weighing the most after data showed the country’s manufacturing sector shrank more than expected in December. While overall business activity still expanded thanks to strength in the services sector, softening industrial production bodes poorly for the economy in the long-term. Chinese stocks sank as the U.S. government added 22 major Chinese firms to a trade blacklist on Thursday, widening its crackdown on China’s semiconductor industry.
Crude oil futures settled lower on Thursday as concerns about easing supply following a partial restart of the Keystone Pipeline. The dollar’s rise on hawkish comments by the Federal Reserve weighed as well on oil prices.
Upcoming Events:
- 07:00 am GMT – (GBP) Retail Sales m/m
- 08:15 am GMT – (EUR) French Flash Services PMI
- 08:15 am GMT – (EUR) French Flash Manufacturing PMI
- 08:30 am GMT – (EUR) German Flash Manufacturing PMI
- 08:30 am GMT – (EUR) German Flash Services PMI
- 09:30 am GMT – (GBP) Flash Manufacturing PMI
- 09:30 am GMT – (GBP) Flash Services PMI
- 02:45 pm GMT – (USD) Flash Services PMI
- 02:45 pm GMT – (USD) Flash Manufacturing PMI
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