July 3, 2019

Daily Market Review – Monday, July 3, 2019

Daily Market Review – Monday, July 3, 2019

Asia

June’s services PMIs this morning launched in an upward incline, Japan’s reading adding 2 ticks while China’s Caixin declining 7 rather on expectations of a 3-tick rise to 53. Markets across Asia closed mainly in the red, the Nikkei down a ½% and the Hang Seng about a ¼. Chinese benchmarks fared worse, the Shenzhen Composite down 1.32%. After rejecting 0.1460, the Yuan seems to be seeking support at 0.1450. In Japan, Japanese Prime Minister Shinzo Abe said he would not raise sales taxes, while BoJ policymakers said interest rates would remain low despite a very slow economic expansion. Meanwhile, down under, Australia this morning reported a 4% increase in exports for May, nearly triple the month before, as commodity prices rise.

Europe

With one down and four to go, former French Finance Minister Christine Legarde has been nominated as the next head of the European Central Bank. Her biggest task being to revive a stagnant economy, Legarde has no former monetary policy experience. Service PMIs this morning are surprising analysts to the upside, adding nearly a full point in Spain, a ½ in the EU, Italy and Germany, and a mere point and a half in France. Retail sales in Germany steadied somewhat at a 0.6% decline, surprising analysts on the Y-o-Y figure by remaining steady at 4% in May. The Union’s Producer Price Index lost a percent, coming in at 1.6% Y-o-Y in May. Meanwhile, housing in the UK suffered a 5-point drop to 53.1 in June and the British Retailers Consortium reported a 0.1% contraction in retail shop prices for the first time in 8 months. With the pound trading in a 1.26-28 range since May, the FTSE 100 hit a 10-month high yesterday, despite weak closings across the region. Germany’s Ambassador to England this morning responded to PM contender statements for a no-deal Brexit by saying there would be no change to the proposed withdrawal agreement. In Russia, Central Bank Governor Elvira Nabiullina said she plans to gradually lower interest rates toward 6%. Recently, in an effort to battle money laundering, several smaller banks have been closed down.

US

US indexes yesterday had another bland day, adding about a 1/5% on closing. The Redbook Research institute yesterday published a ½% increase in its YoY measure of same-store-sales-growth for June. Despite Trumpian noises to the contrary, Reuters reports that the US Department of Commerce has issued instructions that China’s Huawei will continue to be blacklisted.

Commodities

Oil overnight paused its 2-day fall, bouncing off of support at $56 per barrel of WTI after the API delivered a 5mB withdrawal for the final week of June. And gold trading in the Asian session regained a week’s-worth of losses and is trading again just under the 1430 mark. bitcoin bounced off support at $10k yesterday. This morning finds the crypto in an upward incline that has crossed the 11-mark and seems aimed at 12.

Economic Calendar

Today’s Top Economic Events
TIME/PLACE RELEASE/DATA
11:00 AM GMT – US MBA Mortgage Applications, Challenger Job Cuts at 11:30, and Employment Change (Jun) at 12:15. May’s Trade Balance and Jobless Claims (Jun 21) at 12:30. Markit PMI Composite Services PMIs at 13:45, and ISM Non-Manufacturing PMI and Factory Orders at 14:00.
12:30 PM GMT – Canada International Merchandise Trade (May), Exports and Imports (Apr)
14:30 PM GMT – OIL EIA Crude Oil Stocks Change (Jun 28)
23:50 PM GMT – Japan Foreign Investment in Japan Stocks & Bonds trading (Jun 28)
01:30 AM GMT (+1) – Australia Retail Sales (May)
    For more, visit our Economic Calendar