Global Markets:
- Asian Stock Markets : Nikkei down 0.80%, Shanghai Composite down 1.73, Hang Seng down 0.65% ASX down 1.16%
- Commodities : Gold at $1987.05 (-0.32%), Silver at $23.467 (-0.29%), Brent Oil at $91.46 (-0.79%), WTI Oil at $87.21 (-1.07%)
- Rates : US 10-year yield at 4.969, UK 10-year yield at 4.703, Germany 10-year yield at 2.919
News & Data:
- (GBP) Retail Sales m/m -0.9% vs -0.3% expected
- (CAD) Core Retail Sales m/m 0.1% vs -0.1% expected
Markets Update:
Markets across the Asia-Pacific region extended their losses on Friday, following a broad sell-off the previous day. This decline was primarily in response to U.S. Federal Reserve Chair Jerome Powell’s remarks, in which he expressed concerns about persistently high inflation and the potential need for economic growth reduction. Adding to the economic anxiety, the benchmark U.S. 10-year Treasury yield exceeded 5% for the first time in 16 years on Thursday evening.
Powell acknowledged some progress in controlling inflation but emphasized that monetary policy had not yet become overly restrictive. Asian investors also monitored Japan’s September inflation data, which stood at 3%, marking the 18th consecutive month above the Bank of Japan’s 2% target. Additionally, China’s one-year and five-year loan prime rates were under scrutiny.
In the Asia-Pacific markets, Australia’s S&P/ASX 200 closed 1.16% lower, Japan’s Nikkei 225 saw a 0.80% decline, and South Korea’s Kospi dropped by 1.69%. Hong Kong’s Hang Seng index shed 0.73%, and China’s benchmark CSI 300 index slipped by 0.65%, nearing its one-year low.
In the United States, all three major indexes faced losses due to Powell’s comments and rising bond yields. The 10-year Treasury yield approached the critical 5% level last seen in 2007, with the Dow Jones Industrial Average declining by 0.75%, the S&P 500 dropping by 0.85%, and the Nasdaq Composite leading losses at a 0.96% decrease.
Upcoming Events:
- 2:00 PM GMT – EUR Consumer Confidence
