Global Markets:
- Asian Stock Markets : Nikkei down 0.73, Shanghai Composite down 0.52%, Hang Seng down 0.47%, ASX down 0.47%
- Commodities : Gold at $1949.45 (-0.21%), Silver at $23.45 (-0.05%), Brent Oil at $93.2 (-1.21%), WTI Oil at $89.42 (-1.22%)
- Rates : US 10-year yield at 4.362, UK 10-year yield at 4.3155, Germany 10-year yield at 2.737
News & Data:
- (CAD) CPI m/m 0.4% vs 0.2% expected
- (CAD) Median CPI y/y 4.1% vs 3.7% expected
- (CAD) Trimmed CPI y/y 3.9% vs 3.7% expected
Markets Update:
Asian-Pacific markets faced a broad decline as China chose to maintain its one-year and five-year loan prime rates without adjustments. Traders in the region were gearing up for the imminent decision on interest rates by the U.S. Federal Reserve, slated for Wednesday in the United States. China’s decision to keep its one-year rate at 3.45% and the five-year rate at 4.2% played a significant role in shaping market sentiment.
In addition to China’s rate decision, economic indicators from Japan and South Korea contributed to market dynamics. Japan’s Nikkei 225 index declined by 0.73%, closing at 33,023.78, while South Korea experienced a slight uptick in wholesale inflation, breaking a trend dating back to July 2022. Meanwhile, Japan’s trade data for August showed a notable narrowing of the trade deficit on a year-on-year basis, with both imports and exports falling less than expected.
Australia’s S&P/ASX 200 faced a 0.47% decline, ending at 7,163.3, marking its third consecutive day of losses. On the contrary, South Korea’s Kospi index closed slightly higher, up 0.02% at 2,559.77, defying the broader market’s downward trend. Nevertheless, the Kosdaq index slipped by 0.13% to 882.72.
In tandem with regional trends, Hong Kong’s Hang Seng index fell by 0.47% following China’s announcement on the loan prime rates, while mainland Chinese markets also reported negative territory, with the CSI 300 index dropping by 0.15%. In the United States, on the preceding day, all three major stock indices saw declines in anticipation of the Federal Reserve’s decision. The Dow Jones Industrial Average retreated by 0.31%, the S&P 500 registered a 0.22% slide, and the Nasdaq Composite recorded a loss of 0.23%.
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