Commodity, Currency and Fixed Income Snapshots – 210815

Commodity, Currency and Fixed Income Snapshots

Crude Oil

At 0330GMT today, Brent crude oil one month futures contract is trading 1.16% or $0.54 lower at $46.08 per barrel. Yesterday, the contract declined 1.15% or $0.54, to settle at $46.62 per barrel, amid concerns that crude oil inventories would continue to rise in the future.

Gold

At 0330GMT today, Gold futures contract is trading 0.94% or $10.80 higher at $1163.80 per ounce. Yesterday, the contract advanced 2.21% or $24.90, to settle at $1153.00 per ounce, as demand for gold continued to mount following dovish FOMC minutes and massive plunge in global bourses.

Currency

At 0330GMT today, the EUR is trading 0.35% higher against the USD at $1.1280, ahead of the Euro-zone’s and German manufacturing PMI data for August, slated to be released in a few hours. Moreover, the Euro-zone’s consumer confidence data for August would also grab a lot of attention today. Yesterday, the EUR strengthened 1.07% versus the USD, to close at $1.1242, amid dovish minutes from the FOMC meeting.

At 0330GMT today, the GBP is trading marginally lower against the USD at $1.5689, ahead of UK’s public sector net borrowing data for July, scheduled to release later in the day. Meanwhile, investors would closely monitor the US manufacturing PMI figures for August, scheduled to be released later today. Yesterday, the GBP strengthened 0.07% versus the USD, to close at $1.5690. Meanwhile, Britain’s retail sales advanced less than expectations in July.

Fixed Income

In the US, long term treasury prices rose and pushed yields lower, after a massive sell-off in equity markets amid a slowdown in world economy spurred investors towards risk-free assets. Yesterday, yield on 10-year notes fell 3 basis points to 2.09%, while yield on 2-year notes gained 2 basis points to 0.69%. Meanwhile, 30-year bond yield fell 5 basis points to 2.76%.

Key Economic News

UK retail sales advanced less than expected in July

On a MoM basis, retail sales rose 0.10% in July, in the UK, compared to a revised fall of 0.10% in the prior month. Market expectation was for retail sales to rise 0.40%.

UK retail sales advanced less than expected in July

In the UK, retail sales registered a rise of 4.20% on an annual basis in July, lower than market expectations for a rise of 4.40%. In the prior month, retail sales had registered a revised similar rise.

UK balance of firms reporting total order book above normal rose unexpectedly in August

In August, the balance of firms reporting total order book above normal climbed unexpectedly to -1.00 in the UK, compared to market expectations of an unchanged reading. The balance of firms reporting total order book above normal had registered a reading of -10.00 in the prior month.

UK CBI trends selling prices registered a drop in August

Compared to a level of 1.00 in the prior month CBI trends selling prices dropped to -6.00 in August, in the UK.

German producer price index remained flat in July

In Germany, the producer price index remained flat in July on a MoM basis, meeting market expectations. The producer price index had fallen 0.10% in the prior month.

German producer price index fell as expected in July

On an annual basis in July, the producer price index slid 1.30% in Germany, at par with market expectations. The producer price index had dropped 1.40% in the previous month.

Swiss trade surplus widened in July

Trade surplus in Switzerland rose to CHF 3.74 billion in July. Switzerland had reported a revised trade surplus of CHF 3.51 billion in the previous month.

Swiss imports declined in July

In July, on a monthly basis, imports in Switzerland registered a drop of 2.50%. In the previous month, imports had registered a revised rise of 2.50%.

Swiss exports registered a drop in July

Exports in Switzerland recorded a drop of 1.70% in July on a monthly basis. Exports had registered a revised drop of 0.70% in the prior month.

Rate hikes will impact house prices, warned John Williams

San Francisco Fed President John Williams in a speech in Jakarta, Indonesia said that hike in interest rates would lower inflation-adjusted house prices and warned that such a reduction could lead to downward effects on real gross domestic product and inflation. Further he stated that using monetary policy actions to tackle house prices might be ineffective when macroeconomic and financial stability goals are in conflict.

US initial jobless claims recorded an unexpected rise in the last week

The seasonally adjusted initial jobless claims registered an unexpected rise to 277.00 K in the week ended 15 August 2015, in the US, compared to market expectations of a drop to 271.00 K. Initial jobless claims had registered a revised level of 273.00 K in the previous week.

US continuing jobless claims fell in the last week

Compared to a revised reading of 2278.00 K in the prior week the seasonally adjusted continuing jobless claims eased to 2254.00 K in the US, in the week ended 08 August 2015. Markets were expecting continuing jobless claims to fall to 2265.00 K.

US existing home sales rose surprisingly in July

In the US, existing home sales unexpectedly climbed by 2.00%, on MoM basis, to a level of 5.59 million in July, higher than market expectations of 5.43 million. In the prior month, existing home sales had recorded a revised level of 5.48 million.

US Philadelphia Fed manufacturing index recorded a rise in August

In the US, Philadelphia Fed manufacturing index registered a rise to 8.30 in August, higher than market expectations of an advance to a level of 6.80. In the prior month, Philadelphia Fed manufacturing index had registered a level of 5.70.

US leading indicator surprisingly eased in July

Leading indicator unexpectedly fell 0.20% on a monthly basis in July, in the US, compared to an advance of 0.60% in the previous month. Markets were expecting leading indicator to advance 0.20%.

Canadian wholesale sales rose more than expected in June

In June, on a MoM basis, wholesale sales climbed 1.30% in Canada, compared to a revised fall of 0.90% in the prior month. Market expectation was for wholesale sales to rise 1.00%.

Japanese convenience store sales rose in July

Convenience store sales in Japan registered a rise of 1.20% in July on an annual basis. Convenience store sales had advanced 0.60% in the prior month.

Japanese manufacturing PMI advanced in August

In August, the flash manufacturing PMI climbed to 51.90 in Japan. Manufacturing PMI had registered a reading of 51.20 in the prior month.

Chinese Caixin/Markit manufacturing PMI index fell unexpectedly in August

The preliminary Caixin/Markit manufacturing PMI index dropped unexpectedly to 47.10 in China, in August, compared to a level of 47.80 in the previous month. Market expectation was for Caixin/Markit manufacturing PMI index to rise to a level of 48.20.

Economic Calendar