Global Markets:
- Asian Stock Markets : Nikkei up 0.56%, Shanghai Composite down 1.31%, Hang Seng down 1.98%, ASX down 0.58%
- Commodities : Gold at $1945.30 (-0.12%), Silver at $23.07 (-0.73%), Brent Oil at $76.05 (+0.20%), WTI Oil at $71.39 (+0.28%)
- Rates : US 10-year yield at 3.752, UK 10-year yield at 4.437, Germany 10-year yield at 2.431
News & Data:
- (GBP) CPI y/y 8.70% vs 8.40% expected
Markets Update:
Asian stock markets are trading mostly lower on Wednesday, following the broadly negative cues from global markets overnight, as some traders continued to cash in on recent strength in the markets by booking profits. They are also cautious ahead of the US Fed Chair Jerome Powell’s congressional testimony later in the day, which could provide clues about the outlook for interest rate moves.
The Australian stock market is modestly lower on Wednesday, snapping the seven-session winning streak, with the benchmark S&P/ASX 200 staying above the 7,300 level, following the broadly negative cues from global markets overnight, with losses in materials and energy stocks amid tumbling commodity prices, partially offset by strength in technology stocks. Hong Kong’s Hang Seng index was the worst performer in Asia for the day, down 2% to a two-week low as heavyweight technology stocks sank the most on fears of rising U.S. interest rates. Japan’s Nikkei 225 index added 0.3%, while the broader TOPIX rose 0.4%. Both indexes traded close to their highest levels in 33 years, buoyed largely by the prospect of monetary policy remaining accommodative in the country.
Rising interest rates and higher bond yields have been a burden for gold which was pinned at $1,936 an ounce, just above last week’s three-month low of $1,924.99. Crude oil prices fell on Tuesday amid concerns that further tightening by the Federal Reserve and other central banks may impact global economic growth and weighed on oil prices.
Upcoming Events:
- 08:30 am GMT – (GBP) HPI y/y
- 10:00 am GMT – (GBP) CBI Industrial Order Expectations
- Tentative – (EUR) German 30-y Bond Auction
- 12:30 pm GMT – (CAD) Core Retail Sales m/m
- 12:30 pm GMT – (CAD) Retail Sales m/m
- 12:30 pm GMT – (CAD) NHPI m/m
- 01:45 pm GMT – (EUR) German Buba President Nagel Speaks
- 02:00 pm GMT – (USD) Fed Chair Powell Testifies
- 02:00 pm GMT – (USD) FOMC Member Cook Speaks
- 02:00 pm GMT – (USD) FOMC Member Jefferson Speaks
- 03:40 pm GMT – (USD) FOMC Member Goolsbee Speaks
- 05:30 pm GMT – (CAD) BOC Summary of Deliberations
- 10:45 pm GMT – (NZD) Trade Balance
