The release of less-than-encouraging Chinese economic data has reinforced fears of a global slowdown and rising interest rates worldwide, which has weighed on most European and American indexes.
China announced a sharper than expected drop in retail sales and an unexpected decline in industrial production in April, due to restrictive measures taken against COVID-19 within the country.
The most worrying aspect of this situation is that a coordinated recession of the great blocks of China, the United States, and Europe may be lurking beneath the surface of the Chinese crisis.
Key figures from Monday’s trading session:
- CAC 40 = -0.23%
- DAX 40 = -0.45%
- EUROSTOXX 50 = -0.49%
- Dow Jones = +0.08%
- Nasdaq = -1.20%
- S&P 500 = -0.39%
- Oil = around $112 a barrel
- Gold = around $1,822 per ounce
- EUR/USD = around 1.0435
- GBP/USD = around 1.2317
- AUD/USD = around 0.6966
- USD/JPY = around 129.18
- USD/CAD = around 1.2849
- Bitcoin = below $30,000
- Ethereum = below $2,036
Key facts from Monday’s trading session:
- The VIX is back down from the 35-mark.
- US 10-year treasury yield is back below the 3% market.
- Chicago wheat futures hit the daily 70-cent trading limit cap, after the Indian export ban.
- Russian ruble hits 5-year high against the euro.
- The Dollar Index is down from a new 20-year high at 105 on Friday morning.
- The GBP might be in its fourth straight week of losses against the USD, after hitting its lowest level in 2-years.
- The EUR is bouncing back from its lowest level since 2017 below 1.04.
- China’s yuan is still weakening, even after losing around 7% against the USD.
- Gold is slightly bouncing back after a fourth consecutive weekly decline.
- WTI Oil recorded their fourth week of gains.
- The S&P 500 energy index reached its highest level since 2014.
- US gasoline prices hit record high.
- The first spot cryptocurrency ETF in the Asia-Pacific region has been launched on the Cboe Australia exchange, five years after the firm ETF Securities approached regulators for the first time.
What else should you monitor this week?
On Tuesday
- Australia – Monetary Policy Meeting Minutes
- United Kingdom – Average Earnings Index + Bonus (Mar)
- United Kingdom – Claimant Count Change (Apr)
- Europe – GDP (Q1)
- Europe – ECB President Lagarde Speaks
- USA – FOMC Member Bullard and Member Mester Speak, as well as Fed Chair Powell
- USA – Retail Sales (Apr)
- USA – Industrial Production (Apr)
- USA – API Weekly Crude Oil Stock
On Wednesday
- Australia – Wage Price Index (Q1)
- United Kingdom – CPI (Apr)
- Canada – CPI (Apr)
- Japan – GDP (Q1)
- Europe – CPI (Apr)
- USA – Building permits (Apr)
- Canada – CPI (Apr)
On Thursday
- Australia – Employment Change & Unemployment Rate (Apr)
- New Zealand – Annual Budget Release
- USA – Philly Fed Manufacturing Index (May)
- USA – Unemployment Claims
- USA – Crude Oil Inventories
- Europe – ECB Publishes Account of Monetary Policy Meeting
On Friday
- United Kingdom – Retail Sales (Apr)
- United Kingdom – MPC Member Pill Speaks
- USA – Existing Home Sales (Apr)
- New Zealand – Trade balance (Apr)
