Global Macro APAC Morning Brief Global Macro APAC Morning Brief Global Macro APAC Morning Brief

Global Macro APAC Morning Brief

Macro 1 minute to read
Kay Van-Petersen

Global Macro Strategist

Summary:  Morning APAC Global Macro & Cross-Asset Snapshot

Happy Macro Wed 2 Oct 2019

APAC Global Macro Morning Brief

So we kick off early hours Asia Wed morning with reports from the Japanese Coast Guard that North Korea seems to have fired a missile toward the East Sea & confirmations of that have been given by South Korea

What is also interesting with the timing of the NK is it coincides with Golden Week & the 70th anniversary of China that was yesterday – i.e. the expectations were that things would be quiet in North Asia during this period

So you have to wonder if the North Koreans are sending their own message to China, alongside the protestors in Hong Kong – which has now recorded it first death

Interestingly enough, at least prior to the launch, the US & NK were due to resume talks this Fri & Sat

All this on the back of a pretty big pullback in the S&P overnight -1.2% to 2940 & a spike in the VIX to 18.56 +14.3%. No doubt triggered by the big miss in US ISM mfg PMI that came in at 47.8a 50.4e 49.1 (this marked back to back month where we have been sub 50)

Generally the Mfg. PMI data for Sep has seen misses & disappointments across the board, one exception was the UK’s 48.3a 47.0e 47.4p – yet at sub 50, its still in contraction territory. EZ as a block now has 8 consecutive months of sub 50 mfg. PMI prints  

O/N sessions saw a big reversal in yields… UST after initially spiking to 1.75% reversed to a session low 1.61% before closing at 1.635%. Bunds & JGBs are at -56bp & -15bp respectively

This pullback in yields was a boon to the precious space which has been struggling of late. Silver jumped +1.41% to 17.24, gold which has not pulled back as much as silver finished up +0.45% to 1479

The flight to safety was also echoed in USDJPY & USDCHF which saw pullbacks of 0.31% & -0.42% to 107.73 & 0.9932 respectively. With EM FX also feeling unloved as the likes of USDTRY 5.7216 & USDZAR 15.3332 climbed by 1.29% & 1.31% respectively

We also got the RBA decision yesterday, which whilst in-line with expectations of their 25bp cut to 0.75% - seemed to have a much bigger effect on the market, despite a balanced statement. AUDUSD at 0.67 is a big support level

We also got some key equity sector specific news from Charles Schwab (online broker) which seems set to eliminate commission for US stock, ETF & options trades .

This caused a sell-off in a lot of the US brokers from the lies of TD Ameritrade, Interactive Brokers, E*Trade as well as Schwab itself. Names were down from -10% to -25%

In addition to points & econ data below, focus today will be on Hong Kong protests, seeing whether US equities can bounce back from yesterday’s -1.2% pullback, as well as the latest fiascos around the Trump Impeachment Investigations.  


  • China Golden Week Continues, they are not back in until Tue Oct 8th
  • US: ADP, Crude Oil Inv. & FOMC member  Williams speaking @ 22.50 SGT/HKT ( 10:50 ET)
  • JP: Consumer confidence & monetary base




The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992