7:30 AM EST – ECB’s monetary policy meeting minutes
8:30 AM EST – US initial jobless claims
8:30 AM EST – US producer price index (December)
2:00 PM EST – US federal budget balance
3:30 PM EST – US FOMC member Dudley speaks
6:30 PM EST – Japan’s current account (November)
11:45 PM EST – China’s exports (December)
11:45 PM EST – China’s imports (December)
11:45 PM EST – China’s trade balance (December)
After gaining for three consecutive trading weeks, China’s Shanghai Composite Index started this week on a stronger note and rose in the first three trading days of the week. On Thursday, the Shanghai Composite Index opened lower but regained strength and closed the day at six-week high price levels.
Early on Thursday, the sentiment was mixed amid reports from Bloomberg that Chinese officials are recommending to slow down or stop purchasing US bonds. China’s foreign exchange regulator clarified that the reports about China not buying US Treasury yields is based on erroneous information. Profit-booking along with weakness in real estate stocks limited the Shanghai Composite Index’s upward movement on Thursday.
The market is looking forward to the release of China’s exports, imports, and trade balance data at 11:45 PM EST today. The Shanghai Composite Index rose 0.11% and closed the day at 3,425.57 on January 11. The SPDR S&P China (GXC) fell 0.38% on January 10.
Following a four-week gaining streak, Hong Kong’s Hang Seng Index started this week on a mixed note and regained strength as the week progressed. By closing positive on Wednesday, the Hang Seng Index recorded a 12-day gaining streak, which is the index’s longest gaining streak ever. A higher inflow of money from foreign investors, especially from China, helped the Hang Seng Index rise.
On January 11, the Hang Seng Index rose 0.01% and closed the day at 31,076.50. The iShares MSCI Hong Kong (EWH) fell 0.27% on January 10.
Following a strong performance last week, Japan’s Nikkei Index started this holiday-shortened week on a positive note. However, it lost strength as the week progressed. After briefly pulling back on Wednesday, the Nikkei Index opened lower on Thursday and closed the day with a loss. Weakness in the construction, precision instruments, and transport sectors weighed on the Nikkei Index today.
On January 11, the Nikkei Index fell 0.39% and closed the day at 23,695.00. The iShares MSCI Japan (EWJ) rose 0.64% on January 10.
In the next part, we’ll discuss how European markets performed in the early hours on January 11.