Asia-Pacific Shares Capped by Resurgence in Coronavirus Cases in Europe.

The major Asia-Pacific stock indexes finished mixed but mostly lower on Friday, buoyed by gains in China, but pressured by a cautious mood due to a resurgence of coronavirus infections in Europe and the United States.

Shares in China rose as investors snapped up banking shares due to an improving earnings outlook. Australian stocks erased early losses to trade flat. Japanese stocks edged higher, but South Korean shares lost ground.

On Friday, Japan’s Nikkei 225 Index settled at 23410.63, down 96.60 or -0.41%. Hong Kong’s Hang Seng index finished at 24386.79, up 228.25 or +0.94% and South Korea’s KOSPI Index closed at 2341.53, down 19.68 or -0.83%.

In China, the Shanghai Index settled at 3336.36, up 4.18 or +0.13% and Australia’s S&P/ASX 200 Index finished at 6176.80, down 33.50 or -0.54%.

Australia Shares Finish Lower as Mining, Energy Stocks Fall

Australian shares edged lower on Friday, dragged down by mining stocks after Reo Tinto raised concerns about steel production outside China, with sentiment taking a hit from a resurgence in coronavirus cases in Europe.

The benchmark S&P/ASX 200 Index rose 1.2% this week, recording its second straight weekly gain.

Shares of Reo Tinto fell 0.9% after the world’s biggest iron ore miner said steel production outside of China remains significantly down year on year while rising coronavirus cases were putting global economic growth at risk.

The Australian energy sector fell 1%, tracking lower oil prices. Sector heavyweight Santos fell 2%, while Oil Search tumbled 3%.

South Korean Shares Post Biggest Weekly Fall in Three as Global Virus Woes Weigh

South Korean shares posted their sharpest weekly fall in three on Friday as a resurgence in COVID-19 cases across Europe and the U.S., and fading hopes for a U.S. stimulus package hit sentiment.

In other news, shares of Samsung Electronics fell 0.83% and SK Hynix declined 2.07%. South Korea reported 47 new coronavirus cases as of Thursday midnight, marking the smallest daily cases since September 29.

Nikkei Falls as Coronavirus Resurgence in Europe Hits Sentiment

Japan’s Nikkei share average fell on Friday as new coronavirus curbs in Europe dimmed hopes of a swift global economic recovery, although losses were limited after Fast Retailing forecast upbeat annual earnings.

The Nikkei was helped by gains in index heavyweight Fast Retailing, which jumped more than 4.4% after the operator of casual clothing chain posted better than expected earnings.

For a look at all of today’s economic events, check out our economic calendar.

Asia-Pacific Shares Lower Following Wall Street’s Lead

The major Asia Pacific stock indexes finished mixed-to-mostly lower on Wednesday as some investors reacted to the weak performance on Wall Street the previous session and other responded to a speech from Chinese President Xi Jinping. Shares in Japan and Hong Kong were closed higher, while Australia, South Korea and China posted losses.

In the cash market in Japan, the Nikkei 225 Index settled at 23626.73, up 24.95 or +0.11%. Hong Kong’s Hang Seng Index finished at 24667.09, up 17.41 or +0.07% and South Korea closed at 2380.48, down 22.67 or -0.94%.

China’s Shanghai Index settled at 3340.78, down 18.97 or -0.56% and Australia’s S&P/ASX 200 finished at 6179.20, down 16.50 or -0.27%.

Xi Jinping Offers Hope for Chinese, Hong Kong Investors

Investors had a mixed reaction to a speech by Chinese President Xi Jinping in Shenzhen on Wednesday, as the Shenzhen Special Economic Zone celebrated the 40th anniversary of its establishment.

Xi emphasized the importance of protecting the “legitimate rights and interests of entrepreneurs, property rights as well as intellectual property rights in accordance with the law,” according to a translation of his speech. That would “motivate entrepreneurs to start up and develop their businesses,” he said.

State media outlet Xinhua reported Sunday that the country “unveiled a new comprehensive reform plan for Shenzhen,” giving local authorities there a “more direct and greater say in business” in areas such as carrying out market-based economic reforms.

Hong Kong Shares End Higher as China’s Xi Speech Lifts Tech Stocks

Hong Kong shares recovered lost ground to close higher on Wednesday, as tech stocks climbed after Chinese President Xi Jinping’s Shenzhen speech emphasized on property rights and protection for entrepreneurs, lifting risk appetite.

Heavyweight stock Tencent Holdings Ltd, a Shenzhen-based tech giant, hit an all-time high and closed up 3.1% after Xi’s speech.

Hong Kong listed shares of China Evergrande Group tanked by 16.96% after the firm announced a share placement with estimated gross proceeds of 4.3 billion Hong Kong Dollars ($555 million).

Singapore’s Economy Shrinks at Slower Pace than Expected

Singapore’s economic contraction slowed in the third quarter this year, as the country allowed more activities to resume after a partial lockdown, according to official estimates released by the Ministry of Trade and Industry.

The Southeast Asian economy contracted by 7% in the third quarter compared with a year ago, the ministry said. That slightly missed the 6.8% year-over-year contraction forecast by a Reuters poll of analysts, and was slower than the revised 13.3% year-on-year decline in the previous quarter.

For a look at all of today’s economic events, check out our economic calendar.

Asia-Pacific Stocks – China Shares Surge after PBOC Tweaks Rule, Investors Bet on Steady Recovery

The major Asia-Pacific stock indexes were mixed but mostly higher early Monday with investors keeping an eye on U.S. fiscal stimulus negotiations, and the Chinese Yuan’s movements.

The big gain was in China’s Shanghai Index, followed by Hong Kong’s Hang Seng Index. While shares in Australia struggled, they remained positive, but in Japan, the Nikkei 225 bucked the trend, moving lower.

In the cash market at 03:47 GMT, Japan’s Nikkei 225 Index is trading 23543.95, down 75.74, or -0.32%. Hong Kong’s Hang Seng Index is at 24529.51, up 410.38 or +1.70% and Hong Kong’s Hang Seng Index is trading 2402.66, up 10.70 or +0.45%.

In China, the Shanghai Index is trading 3346.26, up 74.19 or +2.27% and in Australia, the S&P/ASX 200 Index is at 6112.70, up 10.50 or +0.17%.

China Gains Hoist Asian Stocks to Two-Year Peak

Chinese stocks led Asian markets higher on Monday as investors bet on a steady recovery for the world’s number two economy, though caution about the fate of U.S. stimulus kept the dollar firm and a central bank policy tweak unwound some of the Yuan’s gains.

China has returned from an eight day Mid-Autumn festival with investors encouraged by a robust rebound in tourism and ebbing coronavirus cases.

People’s Bank of China Announces Rule Change

Investors will monitor the Yuan’s movement on Monday, after the People’s Bank of China announced a rule change that made it cheaper to short the Yuan.

The central bank announced Saturday that financial institutions now no longer need to set aside cash when conducting some foreign exchange forwards trading, with effect from Monday. Previously, financial institutions had to set aside 20% of the previous month’s Yuan forwards settlement amount as foreign exchange risk reserves, according to Reuters.

South Korea Stocks Gain for Eighth Day on US Stimulus Hopes

South Korean shares rose for the eighth straight session on Monday, as U.S. stimulus hopes lifted investor sentiment. The won hit a more than over one-year high, while the benchmark bond yield also gained.

The Trump administration on Sunday called on Congress to pass a stripped-down coronavirus relief bill, as negotiations on a broader package ran into resistance.

“The KOSPI opened up, tracking gains in the U.S. market on hopes of additional stimulus… though investors will keep an eye on U.S. corporate earnings and political uncertainties,” said Kiwoom Securities analyst Seo-Sang-young.

Australia Shares Inch Higher as Investors Await Earnings, Production Results

Australian shares inched higher on Monday as investors stayed away from making big bets ahead of corporate earnings and production results while awaiting further developments on U.S. stimulus talks.

A slew of Australian companies, including global miners BHP Group and Rio Tinto, are scheduled to report their quarterly production figures later this week, while the ‘big four’ banks will provide the first peek into how lenders fared in the July-September quarter later this month.

For a look at all of today’s economic events, check out our economic calendar.

The Week Ahead: A Brexit Showdown, U.S Politics, and Economic Data in Focus

On the Macro

It’s a busy week ahead on the economic calendar, with 68 stats in focus in the week ending 16th October. In the week prior, 53 stats had been in focus.

For the Dollar:

It’s a relatively busy week ahead on the economic data front.

On Monday and Tuesday, September inflation and wholesale inflation figures are due out.

The focus then shifts to manufacturing sector activity and labor market numbers on Thursday.

Expect the Philly FED Manufacturing PMI for October and the weekly initial jobless claims to impact.

At the end of the week, retail sales and industrial production figures are due out, along with October consumer sentiment numbers.

Expect the retail sales and prelim Michigan consumer Sentiment figures to have the greatest impact.

Away from the calendar, the next Presidential debate on 15th October will also provide direction. That is assuming that Trump decides to attend…

The Dollar Spot Index ended the week down by 0.84% to 93.057.

For the EUR:

It’s also a relatively busy week ahead on the economic data front.

On Tuesday, ZEW Economic Sentiment figures for Germany and for the Eurozone are in focus.

Expect some EUR sensitivity to the numbers on the day.

The focus will then shift to Eurozone industrial production figures for August, due out on Wednesday.

At the end of the week, the Eurozone’s trade figures for August will also garner some interest.

Finalized inflation figures for member states and the Eurozone are also due out. Barring deviation from prelims, however, the numbers should have a muted impact on the EUR.

On the monetary policy front, ECB President Lagarde is scheduled to speak on a number of occasions in the week. Expect any forward guidance or views on the economy to influence.

Away from the economic calendar, Brexit and COVID-19 will need monitoring throughout the week.

The EUR/USD ended the week up by 0.94% to $1.1826.

For the Pound:

It’s a relatively quiet week ahead on the economic calendar.

September claimant counts and August’s unemployment rate are due out on Tuesday and will influence.

BRC Retail Sales Monitor figures, due out in the early hours of Tuesday, will also draw some attention.

August’s employment change and average earnings figures are also due out but should have a muted impact on the day.

Away from the calendar, Brexit and COVID-19 will also provide direction. David Frost is due to attend talks in Brussels. The markets will be looking for an agreement.

The GBP/USD ended the week up by 0.78% to $1.3036.

For the Loonie:

It’s a quiet week ahead on the economic calendar.

In a shortened week, August manufacturing sales figures on Friday will provide direction.

Market risk sentiment and crude oil prices will drive the Loonie ahead of Friday’s numbers.

OPEC and the IEA’s monthly reports are due out in the week. Projections on demand will be of particular interest as the global economic recovery sputters.

The Loonie ended the week up by 1.41% to C$1.3121 against the U.S Dollar.

Out of Asia

For the Aussie Dollar:

It’s a relatively busy week ahead on the economic calendar.

On Wednesday, consumer confidence figures are in focus ahead of September employment figures on Thursday.

Expect the employment figures to have a material impact on the Aussie Dollar.

At the end of the week, new home sales figures will likely have a muted impact on the Aussie.

On the monetary policy front, RBA Governor Lowe is scheduled to speak on Thursday. Expect the Aussie Dollar to be particularly sensitive to any chatter on monetary policy.

While the stats will influence, economic data from China and U.S politics will be the key drivers.

The Aussie Dollar ended the week up by 1.10% to $0.72400.

For the Kiwi Dollar:

It’s also a relatively quiet week ahead on the economic calendar.

Key stats include Electronic card retail sales figures on Tuesday and Business PMI numbers on Friday.

Expect both sets of numbers to influence in the week.

While the stats will influence, economic data from China and updates from Washington will be the key drivers.

From China, trade, industrial production, and inflation figures will influence in the week.

The Kiwi Dollar ended the week up by 0.38% to $0.6666.

For the Japanese Yen:

It is a relatively quiet week on the economic calendar.

Key stats include core machinery orders, finalized industrial production, and tertiary industry activity figures.

We would expect the core machinery order numbers to garner the greatest interest in the week.

The key driver for the Japanese Yen, however, will be chatter from Capitol Hill and the U.S Presidential Election race.

The Japanese Yen ended the week down by 0.31% to ¥105.62 against the U.S Dollar.

Out of China

It’s a busy week ahead on the economic data front.

Mid-week, September trade figures will draw plenty of attention. The markets will be eyeing both the import and the export figures.

The focus will then shift to inflation, industrial production, and unemployment figures due out on Thursday.

Fixed asset investment figures are also due out but would likely have a muted impact on the markets.

The Chinese Yuan ended the week up 1.42% to CNY6.6947 against the U.S Dollar.

Geo-Politics

UK Politics:

It’s last chance saloon for Britain and the EU to come up with the needed compromises to deliver a trade agreement.

Expect plenty of chatter as the markets continue to pin hope on a last-minute agreement.

Failure to come up with a deal will sink the Pound, which has very little going for it at present.

The UK economy is in trouble and the government is expected to inflict more pain in the week ahead. A sharp pickup in new COVID-19 cases is going to force the government to reintroduce containment measures this week.

U.S Politics

There’s never a dull moment in U.S politics and the markets have abandoned Trump and his quest for a 2nd term.

Trump and Biden are scheduled to go head-to-head in the 2nd of 3 debates on Thursday.

Following Trump’s hospitalization, however, the debate had been changed to a virtual debate. The U.S President had responded by refusing to take part, which led to the cancellation of this week’s debate. For Trump, the next debate is still on for 22nd October. It may be too late, however… Trump’s latest loss was a court decision to allow the use of drop boxes and mobile sites to collect mail-in ballots in Pennsylvania. As a swing state, the Republicans are eager to overturn the ruling… It would be a blow should Trump also lose the appeal…

With the polls favoring a Biden/Harris clean sweep, the markets have warmed to Biden’s policies.

While a repeal of Trump’s tax bills is expected, Biden is expected to deliver greater fiscal support.

Don’t expect Trump to go down without a fight, however, which should make things interesting…

Asia Shares Higher as Trump Returns to White House

The major Asia-Pacific stock indexes finished higher on Tuesday tracking Wall Street as U.S. President Donald Trump left the hospital to return to the White House, where he will continue being treated for the coronavirus following his positive diagnosis late last week.

Meanwhile, the Reserve Bank of Australia (RBA) announced its decision to maintain the current policy settings. Additionally, shares of gold firms Northern Star Resources and Saracen Mineral Holdings in Australia surged more than 10% each in Tuesday’s trade after a merger was announced.

Markets in China remained closed for a holiday.

In the cash market on Tuesday, Japan’s Nikkei 225 Index settled at 23433.73, up 121.59 or +0.52%. Hong Kong’s Hang Seng Index finished at 23980.65, up 212.87 or +0.90 and South Korea’s KOSPI Index closed at 2365.90, up 7.90 or +0.34%. Australia’s S&P/ASX 200 Index settled at 5962.10, up 20.50 or +0.35%.

Reserve Bank of Australia Holds Cash Rate Steady

The RBA held its cash rate steady as expected, while policymakers reiterated its promise for additional stimulus if necessary.

In a statement announcing the central bank’s monetary policy decision, RBA Governor Philip Lowe said:  “The Board continues to consider how additional monetary easing could support jobs as the economy opens up further.”

Australian Shares Marginally Higher

Australia shares finished marginally higher after the RBA decision, while gold stocks gained after miners Northern Star Resources and Saracen Mineral Holdings said they would merge to create a global top-10 gold miner by market value.

Nikkei Hits 1-Week High after Trump’s White House Return Lifts Risk Mood

Japanese stocks ended at a near one-week high on Tuesday, as risk sentiment improved after U.S. President Donald Trump returned to the White House following treatment at a hospital for COVID-19, easing fears over political uncertainty.

Investors took cues from Wall Street’s positive finish overnight when main indexes rose sharply on stimulus hopes and on news President Trump would return to the White House after a three-night hospital stay.

Japanese technology and semiconductor shares gained as they benefited from more than a 2% rise in the NASDAQ overnight.

South Korea Stocks Gain for Fifth Session as Trump Returns to White House

South Korean shares closed higher on Tuesday for the fifth straight session as markets across Asia rose after U.S. President Donald Trump was discharged from the hospital following treatment for coronavirus.

Hopes for a fresh U.S. stimulus package appeared to brighten after U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour on Monday on coronavirus relief and were preparing to talk again on Tuesday.

Foreigners were net buyers of 31.1 billion won ($26.77 million) worth of shares on the main board. Foreign investors were seen increasing their bets on companies with optimistic earnings forecasts.

For a look at all of today’s economic events, check out our economic calendar.

Asia-Pacific Shares Slip after Trump Tests Positive for COVID-19; Aussie Retail Sales Drop

Asia-Pacific shares dipped on Friday after President Donald Trump said he and his wife will quarantine after a close aide tested positive for the coronavirus.

Losses were limited to markets in Japan and Australia. Markets in China, Hong Kong, Taiwan, South Korea and India are closed on Friday for holidays. China’s stock and bond markets, foreign exchange and commodity futures markets are closed October 1-8 for the Golden Week holiday.

In the cash market on Friday, Japan’s Nikkei 225 Index settled at 23029.90, down 155.22 or -0.67%. The Topix Index slipped 1%. The Tokyo Stock Exchange returned to trade on Friday following a halting of trade yesterday caused by a hardware glitch.

In Australia, the S&P/ASX 200 closed at 5791.50, down 81.40 or -1.39%.

Singapore’s Straits Times Index slipped 1.06% in afternoon trade. Overall, the MSCI Asia ex-Japan Index dipped 0.33%.

Trump Tests Positive for Coronavirus

President Donald Trump tested positive for COVID-19 early Friday, and is set to quarantine and recover at the White House.

In a tweet early Friday morning, Trump said: “We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!”

Shortly after Trump’s tweet, U.S. stock futures moved sharply lower with Dow futures falling more than 500 points at one point.

White House physician Sean Conley said in a memo early Friday morning:  “The President and First Lady are both well at this time, and they plan to remain at home within the White House during their convalescence.”

He also said he expects Trump to “continue carrying out his duties without disruption while recovering.”

Japan’s Jobs Market Worsens in August as Coronavirus Damage Persists

Japan’s unemployment rate rose in August to its highest in over three years and job availability fell to a more than six-year low, government data showed on Friday, indicating damage caused by the COVID-19 pandemic persisted through the month.

Japan’s seasonally adjusted jobless rate rose to 3.0% in August, the highest since May 2017, labor ministry data showed. The result met analysts’ median forecast of 3.0%.

Australian August Retail Sales Fall 4%, Victoria Hit Hard

Australian retail sales fell 4% in August from the month earlier, official data showed on Friday, with the virus-stricken state of Victoria bearing the brunt of the slowdown. Victoria suffered a 12.6% drop as a strict lockdown saw many businesses shut their doors to customers. There were also declines in most other states.

For a look at all of today’s economic events, check out our economic calendar.

Aussie Shares Set to Snap Three-Day Losing Streak; TSE Suspends Trading

The major Asia-Pacific stock indexes are trading higher in limited action on Thursday. Japan’s Tokyo Stock Exchange suspended trading on Thursday due to a technical issue, while many major markets –China, Hong Kong, South Korea and Taiwan – closed for holidays. Australia and Singapore are open for trading.

In the cash market on Thursday, Australia’s S&P/ASX 200 Index is trading 5907.80, up 91.90 or 1.58%.

‘Technical Glitch’ Shuts Down Tokyo Stock Exchange

Japan Exchange Group said in a Thursday press release that the Tokyo Stock Exchange is halting trading due to a “technical glitch” in the “distribution of market data.” No details were given on when trading could resume.

Singapore’s Singtel Announces CEO Retirement

In a limited news day, shares of Singapore telecommunications firm Singtel rose about 1.4% in Thursday morning trade after the firm announced that its CEO is set to retire on January 1, 2021.

The company’s board has chosen insider Yuen Kuan Moon, currently CEO of Singtel’s Singapore consumer business, as successor to Chua who will stay on as senior advisor to the Chairman to assist with the transition.

The appointment of Yuen, also Singtel’s chief digital officer, comes after the telecom giant in April won one of the licenses to build a 5G network in the country.

Chua, 62 joined the company 31 years ago and as its CEO, she led the international expansion of the business by acquiring Australia’s Optus and a stake in India’s Bharti Airtel, among other investments.

Japan Corporate Pessimism Eases from 11-Year Low

Japanese manufacturers were less pessimistic in July-September compared with the previous quarter when the coronavirus pandemic had pushed down business sentiment to an 11-year low, the Bank of Japan’s “tankan” survey showed.

The headline index for big manufacturers’ sentiment improved to minus 27 in September versus minus 34 in June, which was the lowest level since June 2009, the closely watched survey showed on Thursday.

The result compared with economists’ median estimate of minus 23 in a Reuters poll, and marked the first improvement in seven quarters.

Australia Shares Track Wall Street Higher

Australian shares rose on Thursday, following an upbeat session on Wall Street as talks progressed on a new coronavirus relief package, while easing restrictions in major Australian states also restored confidence in riskier assets.

In Australia, the state of Queensland said it would ease restrictions on some people entering from the country’s most populous state, New South Wales, while case numbers in the coronavirus hotspot of Victoria remained steady.

Later in the day, Prime Minister Scott Morrison is set to announce grants worth A$1.3 billion ($930.93 million) to manufacturers, in an effort to revive an economy battered by the pandemic.

For a look at all of today’s economic events, check out our economic calendar.

Jump in China’s Industrial Profits Underpin Asian Shares; New US Restrictions Sink Chinese Chipmaker SMIC

The major Asia-Pacific stock indexes are trading mixed into the close on Monday with most attention being placed on the steep plunge in Hong Kong-listed shares of Chinese chipmaker SMIC. Chinese stocks provided much of the support for the markets though sentiment was still cautious ahead of a U.S. Presidential debate and as a spike in new coronavirus cases undermined global economic recovery hopes.

In the cash market on Monday, Japan’s Nikkei 225 Index settled at 23511.62, up 307.00 or 1.32%. Hong Kong’s Hang Seng Index is trading 23444.56, up 209.14 or +0.90% and South Korea’s KOSPI finished at 2308.08, up 29.29 or +1.29%.

In China, the Shanghai Index settled at 3217.53, down 1.88 or 0.06% and Australia’s S&P/ASX 200 Index closed at 5952.30, down 12.60 or -0.21%.

US Tightens Exports to China’s Chipmaker SMIC, Citing Risk of Military Use

The United States has imposed restrictions on exports to China’s biggest chip maker SMIC after concluding there is an “unacceptable risk” equipment supplied to it could be used for military purposes.

Suppliers of certain equipment to Semiconductor Manufacturing International Corporation (SMIC) will now have to apply for individual export licenses, according to a letter from the Commerce Department dated Friday and seen by Reuters.

The latest move marks a shift in U.S. policy from earlier this year, when applicants seeking “military end user” licenses to sell to SMIC were told by the Commerce Department that the licenses weren’t necessary, according to three people familiar with the matter.

SMIC said it had not received any official notice of the restrictions and said it has no ties with the Chinese military.

China’s Blue-Chip Index Rises after Upbeat Industrial Profits

China’s blue-chip index started the week on a positive note after latest data pointed to a continued recovery in the world’s second-largest economy from the coronavirus crisis.

Profits at China’s industrial firms grew for the fourth straight month in August, buoyed in part by a rebound in commodities’ prices and equipment manufacturing, the statistics bureau said on Sunday.

China’s recovery has been gaining momentum as pent-up demand, government stimulus and surprisingly resilient exports propel a rebound.

China’s industrial profits rose 19.1% in August, the country’s National Bureau of Statistics announced over the weekend. Chinese economic data has been watched by investors for signs of the country’s continued recovery from the coronavirus pandemic.

South Korea Stocks Jump 1.3% as Daily Virus Cases Drop; Heavyweights Shine

South Korean shares rose on Monday, driven by major heavyweights, as sentiment boosted after the country reported the smallest number of daily coronavirus cases in over a month. The won weakened, while the benchmark bond yields also fell.

The country reported 50 new coronavirus cases, the lowest since a new wave of outbreaks emerged from a church and a large political rally last month.

Shares of South Korean chipmakers Samsung Electronics and DB Hitek rose on hopes that they may benefit from the United States’ new export restrictions on China’s biggest chipmaker SMIC.

South Korean biopharmaceutical company Celltrion and its affiliates Celltrion Pharm and Celltrion Healthcare jumped on the company’s merger announcement.

For a look at all of today’s economic events, check out our economic calendar.

The Week Ahead – Data, Covid-19, Geopolitics and More to Keep the Markets Busy

On the Macro

It’s a busy week ahead on the economic calendar, with 79 stats in focus in the week ending 2nd October. In the week prior, 32 stats had been in focus.

For the Dollar:

It’s a particularly busy week ahead on the economic data front.

Early in the week, September consumer confidence figures will be the key driver on Tuesday.

The market focus will then shift to September ADP nonfarm employment change figures due out on Wednesday.

While finalized 2nd quarter GDP numbers are also due out, these are unlikely to have a material impact on the day.

On Thursday, August inflation and personal spending figures are due out along with the ISM Manufacturing PMI for September.

With the weekly jobless claims also due out, there’s plenty to consider ahead of Friday’s labor market numbers.

At the end of the week, September’s nonfarm payroll and the unemployment rate will also have a material impact.

Trade data, finalized Markit survey PMIs, factory orders, and Michigan consumer sentiment figures should have a limited impact in the week.

Throughout the week a plethora of FOMC members’ speeches is also scheduled.

On the geopolitics front, the markets will also get the first of the Presidential debates on Wednesday. It could be a humdinger of a week…

The Dollar Spot Index ended the week up by 1.85% to 94.642.

For the EUR:

It’s also a busy week ahead on the economic data front.

Early in the week, key stats include prelim inflation figures for September and economic sentiment figures for the Eurozone.

Following disappointing August inflation figures, expect any pickup in deflationary pressure to test the EUR.

On Wednesday, French and German consumer spending and German unemployment figures are due out.

Eurozone inflation figures will also be in focus ahead of another busy day on Thursday.

On Thursday, Manufacturing PMIs for Italy and Spain will be in focus. Expect plenty of interest in the numbers.

Barring any marked deviation from prelim, however, finalized numbers from France and Germany will be brushed aside. The Eurozone’s finalized PMI will influence, however.

Other stats in the week include the Eurozone’s unemployment rate that should have a limited impact.

On the monetary policy front, ECB President Lagarde is scheduled to speak on Monday and Wednesday.

With geopolitics also front and center, the EU leader summit later in the week will also need monitoring. Brexit will undoubtedly be a hot topic.

The EUR/USD ended the week down by 1.77% to $1.1631.

For the Pound:

It’s a relatively quiet week ahead on the economic calendar. September’s finalized Manufacturing sector PMI on Thursday will be the key driver.

Finalized 2nd quarter business investment and GDP numbers are also due out on Wednesday. Barring any deviation from prelims, however, the numbers will likely have a muted impact on the Pound.

The lighter economic calendar will leave the Pound in the hands of Brexit and COVID-19.

The GBP/USD ended the week down by 1.32% to $1.2746.

For the Loonie:

It’s a relatively quiet week ahead on the economic calendar.

July GDP and August RMPI numbers are due out mid-week.

Expect July’s GDP to have the greatest impact on Wednesday.

From elsewhere, economic data from the U.S and China will also influence crude oil prices and the Loonie.

The Loonie ended the week down by 1.38% to C$1.3386 against the U.S Dollar.

Out of Asia

For the Aussie Dollar:

It’s a relatively busy week ahead on the economic calendar.

On Wednesday, August building approvals and private sector credit figures are due out. We would expect the private sector credit figures to have the greatest impact.

On Thursday, the focus shifts to manufacturing numbers for September, ahead of August retail sales figures on Friday.

With RBA reliant upon consumer spending to support economic recovery, the retail sales figures will draw plenty of attention.

Market risk sentiment and economic data from China will also influence, however.

The Aussie Dollar ended the week down by 3.54% to $0.7031.

For the Kiwi Dollar:

It’s a relatively quiet week ahead on the economic calendar.

Key stats include August building consents and September business confidence figures.

Expect the business confidence figures to have the greatest impact on the day.

From elsewhere, China’s manufacturing PMIs will also influence in the week. We’ve seen plenty of Kiwi Dollar sensitivity to economic data from China.

The Kiwi Dollar ended the week down by 3.15% to $0.6546.

For the Japanese Yen:

It is a busier week than usual on the economic calendar.

In the 1st half of the week, September inflation figures are due out along with August industrial production and retail sales figures.

In the 2nd half of the week, the 3rd quarter’s Tankan survey numbers are due out that will draw plenty of interest.

The Japanese Yen ended the week down by 0.97% to ¥105.58 against the U.S Dollar.

Out of China

It’s a relatively busy week ahead on the economic data front.

September’s private sector PMIs are due out on Wednesday. Expect the Caixin Manufacturing PMI to have the greatest impact on risk sentiment on the day.

Going into the week, industrial profit figures due out on Sunday that will also draw interest.

Expect the markets to be sensitive to any major speed bumps amidst U.S-China tensions.

The Chinese Yuan ended the week down 0.81% to CNY6.8238 against the U.S Dollar.

Geo-Politics

UK Politics:

It could be quite a week for the Pound. September is coming to a rapid end and the EU Leaders’ Summit is later in the week.

As things stand, Britain and the EU are nowhere near a blueprint. With the Internal Market Bill now also in the loop, is it judgment day? The markets have been waiting since the summer of 2016 to get a sense of what Brexit will look like.

With Johnson at the helm, the risk has always been for Britain to pull out of talks. Is this the week that the curtain comes down on the EU and its demands?

U.S – China

There’s never a dull moment. With the Presidential Election debates kicking off this week, China will likely remain a hot topic.

With Trump trailing Biden, time is running out, and smear tactics are more than likely. The markets may not like it, however.

U.S Politics

Presidential Election fever is picking. Brokers are calling for more margin to manage an anticipated spike in volatility. Trump continues to attack China on COVID-19 and tech.

The first of the Presidential Election Campaigns in the week ahead will set the tone.

Investors will get a sense of who the market favors during the course of the debate…

Asia Pacific Indexes Chase Wall Street Higher in Early Trade on Friday

The major Asia Pacific stock indexes are expected to open steady to better on Friday in a cautious trade as investors react to the better-than-expected performance on Wall Street on Thursday. This follows steep losses the previous session.

Thursday Recap

The Asia-Pacific markets saw losses on Thursday, following an overnight drop on Wall Street.

Hong Kong’s Hang Seng Index fell 1.82% to close at 23,311.07. Mainland Chinese stocks slipped on the day, with the Shanghai Composite down 1.72% to approximately 3223.18 while the Shenzhen Component declined 2.238% to about 12,816.61.

The Taiex in Taiwan dropped 2.54% to close at 12,264.38. In Japan, the Nikkei 225 fell 1.11% to finish its trading day at 23,087.82 while the Topix Index shed 1.08% to close at 1,626.44.

Over in Australia, the S&P/ASX 200 declined 0.81% on the day to 5,875.90.

Tech Shares Led the Decline

Technology shares in Asia took a hit on Thursday, following losses seen by their counterparts stateside.

In Japan, conglomerate Softbank Group saw its stock drop 4.52%. Kakao in South Korea also fell 3.69%. In Hong Kong, shares of Chinese smartphone maker Xiaomi slipped 4.84% while Tencent declined 1.75%, with the Hang Seng Tech Index falling 3.35% on the day to 7,054.28. Meanwhile, Taiwan Semiconductor Manufacturing Company shares in Taiwan shed 2.42%.

Friday’s Early Forecast

Asian stocks were set to open steady to higher as a late Wall Street rally supported global sentiment although weak U.S. data and uncertainty about a stimulus package in Washington have kept a lid on confidence.

U.S. stocks ended positive in choppy trading on Thursday, led by a dogged comeback in the technology sector, having initially sold off on higher than expected unemployment claims.

In early Asian trade, Australia’s S&P/ASX 200 futures rose 0.12% and Japan’s Nikkei 225 futures added 0.13%. Hong Kong’s Hang Seng Index futures rose 0.45%.

In the U.S., Democrats in the U.S. House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on as soon as next week, with House Speaker Nancy Pelosi reiterating she is ready to negotiate on it with the White House.

Keep An Eye on South Korea

Asia Pacific investors will be keeping an eye on South Korea after stocks fell on Thursday as tensions on the Korean Peninsula reignited.

The index lost 2.59% following reports that South Korea’s defense ministry said North Korea had killed a missing official from the South earlier this week.

Traders will be watching to see if the situation gets diffused or if it escalates. Although the broad-based index fell sharply, shares of South Korean defense firm Victek soared 25.13%.

For a look at all of today’s economic events, check out our economic calendar.

Asia Pacific Shares Fall as Investors Shun Riskier Assets on Rising COVID-19 Concerns

The major Asia Pacific stock indexes were broadly weaker Tuesday as possible delays in expanded U.S. stimulus and concerns about fresh pandemic lockdowns in Europe dented the recent positive sentiment towards global equity markets. South Korea’s KOSPI led losses among the region’s major markets.

In the cash market, Hong Kong’s Hang Seng Index settled at 23716.85, down 233.84 or -0.98% and South Korea’s KOSPI Index finished at 2332.59, down 56.80 or -2.38%.

China’s Shanghai Index settled at 3274.30, down 42.63 or -1.29% and Australia’s S&P/ASX 200 closed at 5784.10, down 38.50 or -0.66%.

Japan’s Nikkei 225 Index remained closed for a bank holiday for a second session.

China Stocks End Lower as Surge in Global Virus Cases Weigh

China stocks closed lower on Tuesday as material and transport firms dropped following worries about a surge in global cases of the novel coronavirus.

Beijing is unlikely to approve an “unfair” deal Oracle Corp and Walmart Inc said they have struck with ByteDance over the future of video-streaming app TikTok, state-backed newspaper Global Times said in an editorial.

Among sectors, only securities firms gained as investors cheered latest consolidation in the industry. The Guolian-Sinolink merger could help consolidate financial resources and promote healthy development of the securities industry, analysts at Guosen Securities said in a report.

Consumer shares erased earlier gains through losses were narrower than other sectors.

China’s cabinet on Monday issued guidelines to boost new types of consumption, including online shopping and payments, in a bid to support the recovery of the economy.

South Korean Stocks Post Worst Fall in a Month on Europe Lockdown Concerns

South Korean shares dropped nearly 2.4% on Tuesday, logging the sharpest decline in a month, as investors shunned riskier assets on concerns about new coronavirus restrictions in Europe. Both the won and the benchmark bond yield weakened.

With COVID-19 infections on the rise in Europe, countries including Denmark, Greece and England have tightened restrictions, spurring fears about fresh lockdowns that could further pressure the economy.

Most of South Korea’s market heavyweights slumped, with the two largest – Samsung Electronics and SK Hynix – falling 1.7% and 3.8%, respectively.

LG Chem, a Tesla supplier, soared as much as 5.1% ahead of the electric-car maker’s “Battery Day” event on hopes for increased battery cell purchases from Tesla.

Finally, the Bank of Korea said it sees no need to downgrade its current economic growth projections, even after the government imposed tougher social distancing measures to curb a spike in coronavirus cases in late August.

For a look at all of today’s economic events, check out our economic calendar.

Asia-Pacific Markets Rocked by Plunge in Hong Kong Bank Stocks, Rising Global Virus Fears

The major Asia-Pacific stock indexes were lower on Monday, with Hong Kong’s Hang Seng Index leading losses. Markets in Japan were closed on Monday for a holiday. The catalysts behind the weakness were reports that some Hong Kong banks moved suspicious funds, rising COVID-19 cases and escalating tensions between the United States and China.

In the cash market on Monday, Hong Kong’s Hang Seng Index settled at 23950.69, down 504.72 or -2.06% and South Korea’s KOSPI Index finished at 2389.39, down 23.01 or -0.95%.

In China, the Shanghai Index settled at 3316.94, down 21.15 or -0.63% and Australia’s S&P/ASX 200 Index closed at 5822.60, down 41.90 or -0.71%.

Hong Kong Leads Losses as HSBC and StanChart Shares Tumble after Reports Show They Moved Suspicious Funds

Hong Kong-listed shares of Standard Chartered and HSBC tumbled on Monday following reports that they allegedly moved large sums of suspicious funds.

By Monday afternoon, shares of Standard Chartered tumbled 4.84%. HSBC also plunged 4.52%, trading at lows not seen in more than 25-years, according to FactSet. The moves came after the banks – among several global lenders – were identified in media reports as having allegedly moved suspicious funds over a period of nearly two decades, according to Reuters. The reports cited confidential documents submitted by banks to the U.S. government.

China Shares End Lower as Key Lending Rate Kept Steady for 5th Month

China stocks ended lower on Monday, dragged by consumer staples and financial stocks after the central bank left its benchmark lending rate unchanged, with investors taking profits after expectations of further stimulus lifted shares in the previous session.

China kept its benchmark lending rate for corporate and household loans, the loan prime rate (LPR), steady for a fifth straight month, as expected. The monthly fixing came after the People’s Bank of China kept medium-term borrowing costs unchanged, and after President Xi Jinping said China’s economy remains resilient.

South Korea Stocks Dip as Global Virus Concerns Offset Domestic Export Boost

South Korean shares ended lower on Monday as concerns over surging coronavirus cases in Europe and fading U.S. fiscal stimulus hopes offset optimism around domestic trade and virus situations.

European countries from Denmark to Greece announced new restrictions on Friday to curb surging infections in some of their largest cities, while Britain was reported to be considering a new national lockdown.

In other news, South Korea’s exports for the first 20 days of the month returned to growth for the first time since March, helped by higher microchip and car sales, data showed on Monday.

For a look at all of today’s economic events, check out our economic calendar.

Asian Shares Mixed in Early Trade; Miners Lift Aussie Stocks

The major Asian stock indexes are trading mixed early in the session on Wednesday as investors awaited the Federal Reserve’s view on the economy at the end of its policy meeting, although upbeat Chinese and U.S. economic data is giving the indexes a tailwind.

Global equities markets rallied on Tuesday, first on data that showed China’s industrial output and retail sales picked up, and later on an increase in U.S. factory production.

At 01:34 GMT, Japan’s Nikkei 225 Index is trading 23425.55, down 29.34 or -0.13%. Hong Kong’s Hang Seng Index is at 24732.76, unchanged and South Korea’s KOSPI Index is trading 2439.21, down 4.37 or -0.18%.

In China, the Shanghai Index is trading 3294.96, down 0.72 or -0.02% and in Australia, the S&P/ASX 200 Index is at 5939.60, up 44.80 or +0.76%.

Nikkei Struggles after Japan Exports Tumble

Japan’s exports slumped 14.8% in August from a year earlier, down for the 21st straight month, Ministry of Finance data showed on Wednesday, underlining the coronavirus pandemic’s heavy hit to global demand. That compared with a 16.1% decline expected by economists in a Reuters poll and followed a 19.2% fall in July.

Imports dropped 20.8% in the year to August, compared with the median estimate of an 18.0% decline.

The trade balance came to a surplus of 248.3 billion Japanese Yen ($2.36 billion), against the median estimate of a 37.5 billion Japanese Yen deficit.

Australia Shares Rise on Miners, Tech Boost

Australian shares gained on Wednesday as miners rallied for a third straight session and tech stocks tracked their Wall Street peers higher, with investors hoping that the U.S. Federal Reserve will stick to its supportive policy stance.

The tech index added as much as 2.5% to be the top percentage gainer after its U.S. counterpart ended more than 1% higher overnight, while export-reliant miners were the biggest boost to the benchmark index.

Miners began their jump this week after upbeat Chinese data on Tuesday, with global giants BHP Group and Rio Tinto gaining 1.6% and 2%, respectively.

Apple Supplier Shares Mixed

Apple supplier stocks in the region were mixed in the Wednesday morning trade. Apple Inc retraced earlier gains after its product event, which included the roll-out of a new virtual fitness service and a bundle of its subscriptions into Apple One. The stock, which often dips after a run-up prior to the event, closed up 0.2%. This was well off its intra-day high.

In Japan, shares of Apple supplier Murata Manufacturing rose 0.26% while Sharp gained 0.3%. South Korea’s LG Display, on the other hand, slipped 0.62%.

For a look at all of today’s economic events, check out our economic calendar.

Asia-Pacific Shares Higher Across the Board; Japan’s SoftBank Jumps More than 10%

The major Asia-Pacific stock indexes are trading higher on Monday, boosted by hopes of a coronavirus vaccine, acquisition news and politics. However, sentiment remained cautious ahead of a big week of central bank meetings in the U.K., Japan and the United States.

In the cash market on Monday, Japan’s Nikkei 225 Index is trading 23542.51, up 136.02 or +0.58%. South Korea’s KOSPI Index is at 2424.14, up 27.45 or +1.15% and Hong Kong’s Hang Seng Index is at 24667.61, up 164.30 or +0.67%.

In China, the Shanghai Index is trading 3267.13, up 6.78 or +0.21% and Australia’s S&P/ASX 200 Index is at 5879.30, up 19.90 or +0.34%.

Coronavirus Vaccine Hopes Rekindled as AstraZeneca Resumes Phase-3 Trial

AstraZeneca said on the weekend it has resumed British clinical trials of its COVID-19 vaccine, one of the most advanced in development, after getting the green light from safety watchdogs.

The late-stage trials of the experimental vaccine, developed with researchers from the University of Oxford, were suspended last week after an illness in a study subject in Britain, casting doubts on an early rollout.

A vaccine has long been awaited to help pull the world out of a coronavirus-induced lockdown. Friday marked six months since the World Health Organization (WHO) declared the coronavirus a pandemic on March 11.

Nvidia to Buy Chip Designer Arm for $40 Billion as SoftBank Exits

Nvidia will buy UK-based chip designer Arm from Japan’s SoftBank Group Corp for as much as $40 billion, the companies said on Monday, in a deal set to reshape the global semiconductor landscape.

Nvidia will pay SoftBank $21.5 billion in shares and $12 billion in cash, including $2 billion on signing. The deal will see SoftBank and its $100 billion Vision Fund, which has a 25% in Arm, take a stake in Nvidia of between 6.7% and 8.1%.

Shares of Japan’s SoftBank Group soared 10.26% in Monday afternoon trading.

Japan’s Suga Poised to Win Party Race, Headed for Premiership

Japanese Chief Cabinet Secretary Yoshihide Suga, a longtime loyal aide of outgoing Prime Minister Shinzo Abe, was poised to win a ruling party leadership election on Monday, virtually ensuring that he replaces Abe this week in the nation’s top job.

Suga, who has said he would pursue Abe’s key economic and foreign policies, is expected to get the bulk of votes from 394 Liberal Democratic Party (LDP) lawmakers and is likely to win a majority of 141 votes from the party’s local chapters.

Suga was on track to win over 70% of the MP’s votes and was leading among local chapters, public broadcaster NHK reported.

China Stocks Rise as STAR Market Shines on Regulatory Nod to Launch ETFs

Chinese shares rose on Monday, with Shanghai’s NASDAQ-style STAR Market leading gains after securities regulator approved the first batch of exchange-traded funds (ETFs), which are expected to draw fresh funds into the market.

Financial sector climbed up marginally after China issued new rules on Sunday to regulate financial holding companies, in its latest move to prevent systematic risks to the nation’s vast financial sector.

In other news, sources told Reuters that ByteDance abandoned the sale of TikTok in the United States on Sunday in pursuit of a partnership with Oracle Corp that it hopes will spare it a U.S. ban while appeasing China’s government.

For a look at all of today’s economic events, check out our economic calendar.

The Week Ahead – The BoE, BoJ, the FOMC, Economic Data, and Geopolitics in Focus

On the Macro

It’s a particularly busy week ahead on the economic calendar, with 65 stats in focus in the week ending 18th September. In the week prior, 41 stats had been in focus.

For the Dollar:

It’s a busy week ahead on the economic data front.

In the 1st half of the week, September NY Empire State Manufacturing and August industrial production figures are in focus.

The markets will be looking for a continued upward trend to support hopes of further economic recovery.

Mid-week, the market focus will shift attention to August retail sales figures due out on Wednesday. Expect plenty of influence, with consumer spending key to the U.S economic revival.

On Thursday, Philly FED Manufacturing and weekly jobless claims will influence ahead of consumer sentiment figures on Friday.

While we can expect plenty of influence from the stats, the FOMC monetary policy decision on Wednesday will be the main event.

The key area of focus will be the FOMC economic projections and interest rate projections.

We saw the Dollar take a beating following the FED’s announcement of its new monetary policy framework… The projections will need to reflect a low for longer outlook to pin back the Greenback.

The Dollar Spot Index ended the week up by 0.66% to 93.333.

For the EUR:

It’s also a busy week ahead on the economic data front.

In the 1st half of the week, Eurozone industrial production, wage growth, and economic sentiment figures are due out. Germany’s ZEW economic sentiment figures are also due out.

Expect the ZEW economic sentiment figures to be the key driver on Tuesday.

On Wednesday, trade data for the Eurozone are due out. Barring particularly dire numbers, the trade data should have a muted impact on the EUR.

Through the week, finalized August inflation figures for member states and the Eurozone are also due out.

Following sensitivity to the prelim numbers, expect the EUR to be sensitive to any revisions in the week.

The EUR/USD ended the week up by 0.07% to $1.1846.

For the Pound:

It’s a particularly busy week ahead on the economic calendar. In the 1st half of the week, earnings and employment figures are due out. From Tuesday’s stats, expect the unemployment rate and claimant count figures to have the greatest impact.

On Wednesday, August inflation figures are also due out. The Pound will likely be sensitive to any deflationary pressure build ahead of the BoE decision on Thursday.

On Thursday, the BoE is in action. While the markets are expecting policy to remain unchanged, there had been some recent dovish chatter. Expect any dissent to influence the Pound.

The market focus will then shift to August’s retail sales figures due out on Friday.

Following the BoE’s gloomy outlook on the economy, weak numbers would weigh heavily, assuming the BoE stands pat on policy.

The GBP/USD ended the week down by 3.64% to $1.2796.

For the Loonie:

It’s a relatively busy week ahead on the economic calendar.

Key stats include August inflation figures on Wednesday and July retail sales figures on Friday.

Both sets of numbers will influence.

On the crude oil front, OPEC and the IEA’s monthly reports will also need consideration in the week. Downward pressures have risen as a result of concerns over demand. Any negative chatter from either OPEC or the IEA and expect some pressure on the Loonie.

The Loonie ended the week down by 0.90% to C$1.3179 against the U.S Dollar.

Out of Asia

For the Aussie Dollar:

It’s a relatively quiet week ahead on the economic calendar.

Key stats include 2nd quarter house price figures on Tuesday and August’s employment figures on Thursday.

Expect the employment numbers to have the greatest impact. We have yet to hear of the RBA talk of negative rates. Dire numbers, following the 2nd quarter GDP numbers, could raise the prospects of further easing.

From the RBA, the monetary policy meeting minutes are due out on Tuesday, with the RBA Bulletin on Thursday.

Any talk of further monetary policy support and gloomy sentiment towards the economy would weigh on the Aussie.

The Aussie Dollar ended the week up by 0.03% to $0.7284.

For the Kiwi Dollar:

It’s another quiet week ahead on the economic calendar.

Key stats include 2nd quarter current account figures on Wednesday and 2nd quarter GDP numbers on Thursday.

The markets will be looking at the GDP numbers to get a sense of whether the RBNZ needs to make a near-term move. These are 2nd quarter numbers, however, so we can expect the markets to be forgiving to an extent.

Following the FED’s shift in monetary policy, central banks will need to douse any bullish demand…

The Kiwi Dollar ended the week down by 0.82% to $0.6666.

For the Japanese Yen:

It is a busy week ahead on the economic calendar.

Key stats include August trade data due out on Wednesday and inflation figures on Friday.

The main event, however, is the BoJ’s interest rate decision on Thursday. What’s next for Japan, as the economy struggles to find its feet?

We have heard frequently from the BoJ, stating its willingness to support. Until now, however, there appears little that the BoJ can do to spur growth.

On the political front, the Liberal Democratic Party leadership vote will take place on Monday. The winner of the election will serve out Abe’s remaining term.

The Japanese Yen ended the week up by 0.08% to ¥106.16 against the U.S Dollar.

Out of China

It’s a relatively busy week ahead on the economic data front.

Key stats include August fixed asset investment, industrial production, and retail sales figures due out on Tuesday.

With little else for the markets to consider in the week, expect industrial production and retail sales to be the key drivers.

Beijing is looking from within for an economic rebound, giving retail sales greater influence than usual.

The Chinese Yuan ended the week up 0.12% to CNY6.8344 against the U.S Dollar.

Geo-Politics

UK Politics

The Pound took a beating last week. Expect Brexit to remain a key driver in the week ahead. From last week, news of a free trade agreement with Japan will be Pound positive. Progress with the U.S on a Brexit deal will be needed, however, for the Pound to avoid any further downside.

U.S – China

It’s all in the U.S President’s hands in the week ahead, as Trump continues to rile Beijing.

Beijing agreed to ramp up imports and stick to the phase 1 agreement, which has limited the impact of Trump’s targeting on Chinese companies. A continued focus and attack on Chinese companies may eventually draw a retaliatory response, however.

U.S Politics

And finally, the U.S Stimulus Package that has failed to make it through. Chatter from the weekend suggests that there is little chance of the package being voted in before the Presidential Election.

With unemployment still at exceptionally high levels, expect the markets to be even more sensitive to the retail sales figures.

The Weekly Wrap – The Pound took a Brexit Tumble, with Central Banks Also in Focus

The Stats

It was a quieter week on the economic calendar, in the week ending 11th September.

A total of 41 stats were monitored, following 78 stats from the week prior.

Of the 41 stats, 23 came in ahead forecasts, with 13 economic indicators coming up short of forecasts. 5 stats were in line with forecasts in the week.

Looking at the numbers, 15 of the stats also reflected an upward trend from previous figures. Of the remaining 26, 22 stats reflected a deterioration from previous.

For the Greenback, it was a 2nd consecutive week in the green. In the week ending 11th September, the Dollar Spot Index rose by 0.66% to 93.333. In the week prior the Index had risen by 0.65% to 92.974.

Out of the U.S

It was a quieter week on the economic data front.

Key stats in the week included August inflation figures and the weekly jobless claims figures.

In a shortened week, the stats were skewed to the positive relative to forecasts.

Both wholesale and consumer inflationary pressures eased less than had been anticipated in August. July JOLT’s job openings also painted a more optimistic view on labor market conditions.

Weekly jobless claims figures disappointed, however, with initial jobless claims sitting at 884k in the week ending 4th September. Economists had forecast jobless claims of 846m. The good news, however, was that there was no increase. In the week prior claims also stood at 884k.

While the stats suggested that the Dollar should have been on the back foot, some jawboning and risk aversion supported the Greenback in the week.

In the equity markets, the NASDAQ and S&P500 slid by 4.06% and by 2.51% respectively. The Dow ended the week down by a more modest 1.66%.

Out of the UK

It was a busy week on the economic calendar. The markets had to wait for a Friday data deluge, however, to get a sense of what lies ahead on the monetary policy front.

The BoE is set to deliver next week and the stats were not conclusive on what the BoE will deliver.

Both industrial and manufacturing production rose by more than expected in July, while easing from a June spike.

GDP numbers did disappoint, however, coming up short of forecasts, with trade data also raising red flags.

In July, the manufacturing production rose by 6.3%, following an 11% jump in June. Economists had forecast a 5% rise.

All in all, however, the Pound was under the Brexit hammer in the week. The chances of a no-deal Brexit rose sharply amidst economic doom and gloom. A reintroduction of COVID-19 containment measures from 14th September was also negative for the Pound.

In the week, the Pound tumbled by 3.64% to $1.2796. In the week prior, the Pound had fallen by 0.55% to $1.3279

The FTSE100 ended the week up by 4.02%, reversing a 2.76% slide from the previous week.

Out of the Eurozone

It was a relatively busy week on the economic data front.

The focus was in the 1st half of the week, with economic data from Germany and the Eurozone in the spotlight.

Stats from German were mixed in the week, while numbers from the Eurozone were skewed to the positive.

In July, industrial production fell by 0.9%, following a 0.6% decline in June. While production was in decline, Germany saw its trade surplus widen from €14.5bn to €18.0bn.

The widening was positive, with exports rising by 4.7% versus a 1.1% increase in imports.

On the GDP front, the Eurozone’s 2nd quarter GDP figures were revised upwards. Nothing convincing enough, however, to support a EUR rebound.

For the 2nd quarter, the economy contracted by 11.8%. In the 1st quarter, the economy had contracted by 3.6%.

While the numbers influenced, the focus was on the ECB, the monetary policy decision, and the Lagarde press conference.

The EUR had spiked at a 5-day high $1.1977 before easing back during the ECB press conference.

For the current year, while the ECB revised up its economic forecasts from 8.7% to 8.0%, the ECB did note that the economic recovery would likely be slower.

On the exchange rate front, Lagarde stated that the ECB does not target the exchange rate. She did say, however, that the ECB will monitor the EUR from a price stability perspective.

For the week, the EUR rose by 0.07% to $1.1846. In the week prior, the EUR had fallen by 0.55% to $1.1838.

For the European major indexes, it was a bullish week. The DAX30 rallied by 2.80%, with the CAC40 and EuroStoxx600 gaining 1.39% and 1.67% respectively.

For the Loonie

It was a quiet week on the economic calendar.

While economic data was limited to housing start numbers, the Bank of Canada’s monetary policy decision was the main event.

Following the FED’s revision to its monetary policy framework, the BoC delivered a dovish message. While dovish, the BoC did hold policy unchanged on Wednesday.

On the positive, the BoC acknowledged that an economic bounce-back looked to be faster than previously forecasted. The BoC did warn, however, of indicators pointing to a slow and choppy recovery process.

A slide in crude oil prices in the week added downward pressure in the week.

The Loonie fell by 0.90% to end the week at C$1.3179. In the week prior, the Loonie had risen by 0.28%.

Elsewhere

It was a mixed week for the Aussie Dollar and the Kiwi Dollar.

In the week ending 11th September, the Aussie Dollar rose by 0.03% to $0.7284, while the Kiwi Dollar fell by 0.82% to $0.6666.

For the Aussie Dollar

It was a quiet week for the Aussie Dollar on the economic calendar.

Key stats including August business confidence and September consumer confidence figures.

Both showed improvement following the negative reaction to the Victoria lockdown measures in the month prior.

With the RBA looking for business investment and consumer spending to support recovery, the numbers delivered much-needed support.

For the Kiwi Dollar

It was also a quieter week on the economic calendar.

Key stats included August electronic retail sales and business PMI numbers.

Both were skewed to the negative, weighing on the Kiwi Dollar in the week.

In August, electronic card retail sales slumped by 7.9%, with the Business PMI falling from 58.8 to 50.7.

A reintroduction of COVID-19 containment measures weighed on spending and the PMI.

Following the RBNZ’s talk of negative rates, there will need to be an improvement in September. Further downside and expect the Kiwi Dollar to give up more ground.

For the Japanese Yen

It was a busier week on the economic calendar.

Household spending and 2nd quarter GDP numbers were in focus in the early part of the week. Neither set of numbers were positive, however, as the Japanese economy continues to struggle.

In July, household spending slid by 6.5%, following a 13% bounce in June. In the 2nd quarter, Japan’s economy contracted by 7.9%, which was a downward revision from a prelim 7.8%.

At the end of the week, there was some positive data, however. The BSI Large Manufacturing Conditions Index rebounded from -52.3 to 0.10 for the 3rd quarter.

With the BoJ in action next week, however, the 3rd quarter indicator may be of little consolation.

The Japanese Yen rose by 0.08% to ¥106.16 against the U.S Dollar. In the week prior, the Yen had fallen by 0.83%.

Out of China

It was a relatively busy week on the economic data front.

Key stats included August’s trade data and inflation figures.

The stats delivered mixed results in the week.

China’s USD trade surplus narrowed from $62.33bn to $58.93bn in August. While exports rose by 9.5%, imports fell by 2.1%, raising concerns over demand.

Inflation figures delivered mixed results. While wholesale deflationary pressures eased in August, inflation softened.

The annual rate of inflation eased from 2.7% to 2.4%. By contrast, the producer price index fell by 2%, year-on-year, following a 2.4% decline in July.

In the week ending 11th September, the Chinese Yuan rose by 0.12% to CNY6.8344. In the week prior, the Yuan had risen by 0.34%.

The CSI300 and the Hang Seng struggled in the week, with losses of 3.00% and 0.78% respectively.

Asia-Pacific Markets – Mixed but Mostly Higher; China’s Gains Not Enough to Offset Steep Weekly Losses

The major Asia-Pacific stock indexes finished mixed but mostly higher on Friday with Australian shares losing ground. China gained on Friday, but posted its biggest weekly drop in eight as U.S.-China tensions weighed on prices.

Hong Kong shares eked out a gain on a tech share rebound. South Korea stocks reversed earlier losses to end flat on big retail buying. Japan’s Nikkei gained as coronavirus fears eased in Tokyo and Australian shares ended near a 2-1/2 month low on worries about virus curbs.

In the cash market on Friday, Japan’s Nikkei 225 Index settled at 23406.49, up 171.02 or +0.74%. Hong Kong’s Hang Seng Index finished at 24503.31, up 189.77 or +0.78% and South Korea’s KOSPI Index closed at 2396.69, up 0.21 or +0.01%.

In China, the Shanghai Index settled at 3260.35, up 25.52 or +0.79% and Australia’s S&P/ASX 200 Index finished at 5859.40, down 49.10 or -0.83%.

China Shares Post Biggest Weekly Drop in Eight as U.S.-China Rift Weighs

Chinese shares recovered lost ground to end higher on Friday, though the benchmark Shanghai Composite Index posted its biggest weekly drop in eight as Beijing’s rift with Washington had investors sticking to safer assets.

Meanwhile, U.S. President Donald Trump said on Thursday the deadline set for Chinese company ByteDance to sell its popular short-video app TikTok’s U.S. assets would not be extended. ByteDance has been looking to pick a buyer so it can finalize a deal by mid-September and comply with Trump’s order to divest TikTok’s assets.

Hong Kong Shares Eke Out Gains on Tech Rebound

Hong Kong shares bounced on Friday, as investors snapped up tech stocks hit by this week’s sell-off, though the benchmark index ended lower for the week as economic worries and U.S.-China tensions continued to weigh on sentiment.

Gains were driven by a rebound in tech shares, which have suffered this week following a sell-off in U.S. technology shares.

South Korean Stocks Reverse Course to End Flat on Big Retail Buying

South Korean shares recouped all losses to close a little better than unchanged on Friday, finishing the week with a gain of over 1%, as more buying by retail investors offset weakness due to a rout in U.S. tech stocks and a rise in domestic cases of COVID-19.

Nikkei Gains as Coronavirus Fears Ease in Tokyo

Japanese shares rose to one-week highs on Friday, tracking U.S. futures higher, after the capital city of Tokyo dropped its coronavirus alert by one notch from the highest level as infections continue to decline.

Market participants said active buying on special quotation fixing to settle September Nikkei futures and options contributed to the rebound into positive territory.

Australian Shares End at a Near 2-1/2-Month Low on Worries about Virus Curbs

Australian shares closed at their lowest in nearly two-and-a-half months on Friday as hopes that the coronavirus curbs would ease soon were dashed after state leaders defended regional lockdowns and internal border closures.

Denting sentiment further were souring diplomatic ties with biggest trading partner China, with Beijing accusing the Australian embassy in China of obstructing law enforcement by sheltering two journalists wanted for questioning.

For a look at all of today’s economic events, check out our economic calendar.

Asia-Pacific Stocks Finish Mixed; Yum China Falls After Hong Kong Debut

The major Asia Pacific stock indexes finished mixed with some snapping their longest losing streaks since February on Thursday. For the buyers, the catalyst was a rebound on Wall Street. For the bears, the recent correction didn’t take prices low enough and stocks remain overvalued especially in the tech sector. They cited weak performances in the currency, commodity and bond markets as reasons to remain cautious about the outlook for risk sentiment.

In the cash market on Thursday, Japan’s Nikkei 225 Index settled at 23235.47, up 202.93 or +0.88%. Hong Kong’s Hang Seng Index finished at 24313.54, down 156.39 or -0.64% and South Korea’s KOSPI Index closed at 2396.48, up 40.67 or +0.87%.

In China, the Shanghai Index settled at 3234.82, down 19.80 or -0.61% and Australia’s S&P/ASX 200 finished at 5908.50, up 29.90 or +0.51%.

China Stocks Shed Early Gains as Regulators Move to Curb Speculation

China shares shed early gains to end lower on Thursday, as more than 300 start-ups slumped earlier in the session after regulators moved to curb speculation on the tech-heavy ChiNext board.

Shares in China’s start-up firms plunged as investors retreated after a few stocks were suspended from trading due to “abnormal volatility” amid reports of government measures to crack down on speculation.

The start-up board ChiNext Composite Index, which gained more than 40% this year, fell 1.6% and Shanghai’s tech-focused STAR50 Index lost 1.38%. More than 300 start-ups dropped more than 10% on Thursday, including 50 companies hitting their downside trading limits.

Shares of Chinese telecom firms also tumbled, as pressure widened for Huawei Technologies with major suppliers expected to stop applying to the telecom giant after new U.S. restrictions.

Hong Kong Shares Track Mainland Stocks Lower as China Start-Ups Drag

Hong Kong shares retreated in the afternoon session to finish lower on Thursday, tracking broad weakness in the mainland market dragged down by a slump in China’s start-up stocks.

Yum China Holdings Inc dropped as much as 6.3% on its Hong Kong market debut, bucking the recent trend of first day pops for local listings with global markets’ volatility weighing on investor sentiment.

Australian Shares End Higher on Hopes of Easing in Virus Curbs

Australian shares closed higher on Thursday as a decline in daily cases in COVID-19 hot spot Victoria boosted hopes of an easing in restrictions.

A dip in daily infections in Victoria to double-digits in the recent days and the Federal Health Minister Greg Hunt’s urge to lift the state’s night curfew, if not imposed on medical grounds, stirred hopes of a relaxation in curbs.

For a look at all of today’s economic events, check out our economic calendar.

European Shares Dragged Down by Weak US Tech Sector; Asia-Pacific Markets Dodge the Tech Rout

Global equity markets finished mixed on Tuesday with the major Asia-Pacific shares rising and European shares retreating as tech shares continued to struggle. Geopolitical tensions remained at the forefront with Asian traders worried about relations between the United States and China and European investors expressing concerns over Brexit. Domestic growth data also influenced risk sentiment as well as further weakness in the tech sector.

In the cash market on Tuesday, Japan’s Nikkei 225 Index settled at 23274.13, up 184.18 or +0.80. Hong Kong’s Hang Seng Index finished at 24624.34, up 34.69 or +0.14% and South Korea’s KOSPI Index closed at 2401.91, up 17.69 or +0.74%.

In China, the Shanghai Index settled at 3316.42, up 23.83 or +0.72% and in Australia, the S&P/ASX 200 Index finished at 6007.80.

Asia-Pacific Influences

Investors continued to monitor geopolitical developments after China accused the U.S. of “bullying” as it launched a global data security initiative on Tuesday.

That development came as the U.S. continues to pressure China’s largest tech firms and convince countries around the world to block them. U.S. President Donald Trump also recently entertained the idea of “decoupling” from China, or refusing to do business with the country.

In economic news, Japan’s revised GDP figures for the April-June quarter showed the country’s economy shrinking at an annualized 28.1%, according to second preliminary estimates released by the Cabinet Office. It was worse than preliminary estimates released in mid-August, which had shown the country’s economy shrinking 27.8% on an annualized basis in April-June.

In stock news, shares of Chinese bottled water firm Nongfu Spring surged more than 80% from their issue price in their debut in Hong Kong. The stock later pared some of those gains, but still gained more than 50% by the market close.

European Market Influences

European shares fell on Tuesday as steep declines in the dominant U.S. tech sector continue to weigh on investor sentiment.

In the cash market at 12:52 GMT, the UK’s FTSE 100 Index is trading 5888.16, down 49.24 or -0.83%. Germany’s DAX Index is at 12887.63, down 212.65 or -1.62% and France’s CAC 40 Index is trading 4947.99, down 105.25 or -2.22%.

In economic news, revised data showed that second-quarter Euro Zone GDP contracted by 14.7% year-on-year and 11% from the previous quarter, less than initial estimates but still its sharpest decline on record.

In geopolitical news, back in Europe, the U.K. is planning to ramp up its preparations to leave the European Union without a deal if no free trade accord can be reached this week.

The Financial times reported that Prime Minister Boris Johnson’s government intends to legislate to override aspects of the Withdrawal Agreement it signed in January, with the EU warning Monday that there will be no deal if this course of action is pursued.

For a look at all of today’s economic events, check out our economic calendar.

Asian Shares Mostly Lower; Hong Kong Shares of China’s SMIC Drop; SoftBank Loses Big on Bad Tech Trades

The major Asia-Pacific stock indexes finished mixed on Monday, but mostly lower, led by a steep drop in China shares. The catalyst behind the sell was rising tech tensions between Washington and Beijing.

China and Hong Kong stocks were especially hit hard after a U.S. official said it was considering adding Hong Kong-listed Semiconductor Manufacturing International Corp to a trade blacklist. Additionally, shares in Japan dropped following a decline in Wall Street shares on Friday while SoftBank Group sank as news revealed it had made massive bets on U.S. technology shares just as a rally in the sector cooled off.

In the cash market on Monday, Japan’s Nikkei 225 Index settled at 23089.05, down 115.48 or -0.50%. Hong Kong’s Hang Seng Index finished at 24589.65, down 105.80 or -0.43% and South Korea’s KOSPI Index closed at 2384.22, up 15.97 or +0.67%.

In China, the Shanghai Index settled at 3292.59, down 62.78 or -1.87% and in Australia, the S&P/ASX 200 finished at 5944.80, up 19.30 or +0.33%.

Hong Kong Shares of China’s SMIC Plunge as Trump Considers Adding Firm in Blacklist

The Trump administration is considering whether to add China’s top chipmaker SMIC to a trade blacklist, a Defense Department official said Friday, as the United States escalates a crackdown on Chinese companies.

The stock was the fifth most actively traded by turnover in early trade. Its Shanghai-listed shares fell as much as 11%.

SMIC is seen as an important player in China’s ambition to grow its domestic semiconductor industry. The potential move by Washington, first reported by Reuters, would mark a major escalation in the tech battle between the U.S. and China.

Nikkei Dips as SoftBank Group Tumbles after NASDAQ Rout

Japan’s Nikkei average dipped on Monday following a fall in Wall Street shares. The selling was led by SoftBank Group, which sank on the news it had made massive bets on U.S. technology stocks just before Thursday’s and Friday’s steep declines. Concerns about high valuations sent Wall Street’s tech-heavy NASDAQ sharply lower during the last two sessions, its biggest setback after almost six months of strong gains.

SoftBank Group sank 6.6% to a two-month low. The company made significant option purchases during the run-up in the U.S. stock market in recent weeks as a way of temporarily investing some proceeds from asset sales, people familiar with the matter said on Friday.

China Says August Exports Beat Expectations, Jumping 9.5% from a Year Ago

China’s dollar-denominated exports beat expectations to rise 9.5% for the month of August from a year ago, data from the country’s General Administration of Customs showed on Monday.

Meanwhile, China’s dollar-denominated imports in August fell 2.1% from a year ago.

Economists polled by Reuters had expected exports to have climbed 7.1% in August from a year ago compared with a 7.2% rise in July, while imports were expected to climb 0.1% in August from a year ago, reversing a 1.4% decline in July.

China posted a trade surplus of $58.93 billion for the month of August, beating the $50.50 billion economists had expected. China’s trade surplus was $62.33 billion in July. The growth was the fastest pace in one-and-a-half years, according to Reuters records.

For a look at all of today’s economic events, check out our economic calendar.