AUSTRALIA - ASIA

Asian equities traded mixed after Wall Street closed slightly negative on Friday. The Nikkei was down 1% on the back of a firmer JPY and the ASX 200 gained 0.12%n on hopes of the RBA easing later in the year. China significantly underperformed with the Shanghai Comp. losing 3.7% after the PBOC continued to weaken the currency.

An onslaught of data is expected later, which promise to make the Asian session a volatile one.

From Australia, we have:

  • Building Approvals m/m expected at -2.9%
  • Current Account expected at -19.8B
  • Cash Rate expected to remain unchanged at 2%
  • RBA Cash Rate statement which will give clues as to the direction the central bank is thinking of taking, given the current and future economic health of the economy.


From China, we have:

  • Manufacturing PMI expected at 49.4
  • Non-Manufacturing PMI previously at 53.5
  • Caixin Manufacturing PMI expected at 48.4


From Japan, we have:

  • Household Spending y/y expected at -2.5%
  • Unemployment Rate expected at 3.3%
  • Capital spending expected at 8.8%

USA

We saw stellar economic data out of the US which puts calls for a rate hike back on the table, most notably was the Prelim GDP q/q which printed 1% vs the expect 0.4%, this ofocurse led to strength around the board for the USD. US equities, however, managed to stay only slightly negative though as a correction in oil price managed to negate the prospect of further tightening. The DJIA finished down 0.3%, the S&P500 finished down 0.2% and the NASDAQ finished down 0.1%.

News out of the US today is relatively light with only the Chicago PMI and Pending Home Sales m/m, expected at 52.1 and 0.6% respectively, on the cards.

EUROPE

Data out of the EU continues to weigh down any hopes of a recovering Euro zone, with ECB`s Praet commenting that these poor figures are an indication that global growth is losing momentum and ECB`s Weidmann, a hawk, stated that global factors cannot be stemmed by ECB monetary policy and that any monetary policy changes will lose momentum rapidly in the face of a global downturn as long as structural problems remain in the area.

Data due out of the Eurozone are as follows:

  • German Retail Sales expected at 0.3%
  • EU Flash CPI Estimates y/y expected at 0%
  • EU Core CPI Flash Estimates y/y expected at 0.9%