Global Markets:
- Asian Stock Markets : Nikkei up 1.33%, Shanghai Composite down 0.16%, Hang Seng up 2.14%, ASX up 0.23%
- Commodities : Gold at $1980.30 (-0.51%), Silver at $23.31 (-0.49%), Brent Oil at $78.56 (+0.54%), WTI Oil at $73.83 (+0.86%)
- Rates : US 10-year yield at 3.560, UK 10-year yield at 3.472, Germany 10-year yield at 2.297
News & Data:
- (AUD) CPI y/y 6.80% vs 7.20% expected
- (USD) CB Consumer Confidence 104.2 vs 101 expected
- (USD) Richmond Manufacturing Index -5 vs -10 expected
Markets Update:
Asian shares rose sharply on Wednesday as easing concerns over the banking sector revived risk appetite, while Alibaba’s stock soared on the internet behemoth’s plans to split into six units. The move is expected to unlock shareholder value and foster market competitiveness, according to a company statement.
The MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.82% higher, while Japan’s Nikkei advanced 0.49%. Hong Kong’s Hang Seng index surged over 2%, buoyed by Alibaba after the Chinese e-commerce conglomerate announced its break-up plans. Alibaba’s Hong Kong shares shot up 15%, while the company’s U.S.-listed shares closed 14.3% higher. The news lifted investor confidence in the wider Chinese tech sector, with shares of Alibaba’s e-commerce rival JD.com Inc 7% higher, and gaming giant Tencent Holdings Ltd jumping 5%. China’s CSI 300 benchmark edged up 0.4%.
Following weeks of volatility in the market after the unexpected failure of two U.S. banks and the rescue of Credit Suisse in Europe, investor nerves were calmed this week by the sale of assets in collapsed lender Silicon Valley Bank and no new signs of further stresses in the banking system. However, investors have not completely lost their anxiety as hints of a big regulatory overhaul are likely to weigh on the sector until details emerge.
In the foreign exchange markets, the dollar index, which measures the U.S. currency against six peers, was mostly flat, having eased 0.3% overnight on improving risk appetite. In commodities, crude oil prices fell as rising U.S. inventories and a surge in coronavirus cases dampened demand outlook. Gold prices edged higher as the dollar weakened and bond yields eased from recent highs.
Upcoming Events:
- 02:00 PM GMT – (USD) Pending Home Sales m/m
