Risk aversion was the name of the game during the Asian session, as a lack of reports turned investors’ attention to the Asian bourses’ weak performances.
- Japan’s services producer price index (y/y) grows by 0.8% vs. 0.9% expected and previous
- Bitcoin jumps to $9,700 and everyone can’t stop talking about it
- Yen gains on overall risk aversion
Jitters from China’s markets
The Asian bourses started the week on a weak note as the Chinese government’s continued crackdown on shadow banking and other risky forms of financing weighed on consumer and banking stocks, which then pulled Chinese indices lower.
- China’s A50 is down by 1.81% to 13,229.12;
- Hang Seng is down by 0.43% to 29,736.50;
- Nikkei is down by 0.28% to 22,487.00, and
- Australia’s A SX 200 treaded water at 5,984.90 (+0.04%).
Commodity prices were a little more mixed:
- Gold rose by 0.19% to $1,289.80;
- U.S. crude oil slipped by 0.41% to $58.71, and
- Brent crude popped up by 0.58%.
Small dollar gains
Whether it’s the overall risk aversion vibe or a bit of optimism ahead of Trump’s tax meeting with Senate Republicans this week, the Greenback managed to sneak in a couple of pips.
Of course, it also doesn’t hurt that incoming Fed Chair Jerome Powell will be under the spotlight tomorrow in a Congressional hearing, where we’ll likely hear his thoughts on issues like growth and inflation.
Major Market Mover(s):
The risk-averse vibe worked well for the low-yielding yen, which gained pips against its major counterparts.
USD/JPY is down by 15 pips (-0.13%) to 111.39;
EUR/JPY is down by 24 pips (-0.18%) to 132.83;
CHF/JPY is down by 30 pips (-0.26%) to 113.56, and
GBP/JPY is down by 31 pips (-0.21%) to 148.33.
Risk aversion and commodity-related concerns rained on the comdolls’ parade today and dragged them lower against their lower-yielding counterparts.
AUD/USD is down by 13 pips (-0.17%) to .7604;
NZD/USD is down by 18 pips (-0.26%) to .6864;
AUD/JPY is down by 25 pips (-0.29%) to 84.69;
CAD/JPY is down by 16 pips (-0.18%) to 87.60, and
NZD/JPY is down by 29 pips (-0.38%) to 76.46.
Watch Out For:
- 6:00 am GMT: Germany’s import price index (0.4% expected, 0.9% previous)