Markets in the weeks ahead. Still pumping more oil into the market from saudi arabia. It comes to the coronavirus story that continues to dominate, President Trump says the u. S. Should be prepared for a painful couple of weeks. Infection rates continue to rise in the u. S. We are hopefully seeing some stabilization in countries like spain and italy. Overall, the global infection rate has passed 800,000. Yvonne. Avon the ecb scrapping european banks. Thats what is weighing on the hang seng. Earnings coming through, really a key indicator in the next couple of weeks. Autos reacting negatively. Down six. 5 . The pboc should impact further cash injections and local authorities should issue more infrastructure bonds. Supporting the economy amid the worsening coronavirus pandemic. Selina wang joining us now from beijing. How significant is this . How should we read into that yvonne that . Selina those pmi numbers coming in better than expected. Back into expansionary territory. Compared to
Annabelle we are counting down to asias major market opens. Paul australias just come online for trade. Traders are looking past a harder than expected u. S. Ppi reading to focus on less hawkish fed commentary. The latest meeting minutes, noting the risks of both over and under tightening. Israel forms an emergency unity government as officials indicate they are preparing for a massive military assault on gaza. Annabelle weve got the open of the asx 200. You can see a very modest gain coming through for aussie stocks. That is a sixth session hi. It follows the gains we saw in the wall street session overnight. What we are watching today essentially is a that story thats come through in treasuries, lower yields, being reflected in the aussie three year, the 10 year. The policy greenback, a little bit firmer aussie greenback, a little bit firm. Traders are taking heed of the dovish views coming through from the fed, expectation around what the fed does next and perhaps we will not see a
U. S. Futures down 6 10 of 1 . Normally a price move you do not see in the asia pacific save for events like we are seeing today. The dow futures, a substantial pickup. Coming off highs on vix futures. We dont have japan trading so youre going to get a lot of that in the form of going straight into these contracts. Since japan is closed looking at futures. The fact a dollar is stronger against Everything Else but the yen is stronger tells you the mood is yvonne do you go into a traditional haven plays like treasuries after the week we had or should we be worried maybe with oil prices being elevated there could be this third wave of inflationary pressures coming into the forefront . That is what the market is contending. You certainly are seeing where the trade is. It is oil markets reacting. Rishaad it has the traders looking at possibly a proxy where with iran taking place. Israel produces Something Like 320 million 20,000 three to 20,000 barrels a day. With the consumption of 236,000
Plus the pboc keeping the oneyear mlf steady, injecting for their cash. When it comes to the fed their expectations, the fed could navigate a soft landing on the back of the strong data on from the u. S. The asx up by 1. 8 . South korea heading up by 1. 2 . Gains for the nikkei and hsi, the csi 300 and the positive. But just barely. We have Foreign Investors dumping 17 billion worth. In the fx space it has been a strong dollar story, but the dollar is flat right now. We are seeing gains in the chinese yuan. Also the aussie dollar getting a lift perhaps from the strong chinese data. It is strong in terms of the commodities space as well. Take a look at wti crude, not too bad. It is up by 90 for the First Time Since november. Rishaad we will have a look at the opening in bangkok, we have the market opening slightly higher following the regional trend. 3 to the upside. A weakness for the currency. Against the backdrop of a new Prime Minister going off to the u. S. And inviting major corpo
Matt miller in hamburg at the g20. This is what were watching. Bonds being bashed. Investors heading for the exit. Number lead payroll to more selling . G20 kicks off. Please use a water can against protesters. Todays main event is trump facetoface with Vladimir Putin. Dozenty in at least a u. S. Power plant has been breached. The chief suspect, russia. Matt, welcome back. Matt 30 minutes to go until the open of the cash trade on equity indexes. If you look at their futures right now, you see a little bit of a mixed picture after a slide for the cash trade. Futures popping positive for germany and france. Still negative for the ftse in london. It will be interesting to see, but as you say, the focus is really going to be on the fixed income trade as though yields continue to sort. German yields went from zero spot for two zero spot six fast. Interesting to see how it is happening across europe and in the u. S. The moves have been aggressive. The european open has not been the greatest