Global Markets:
- Asian Stock Markets : Nikkei up 0.29%, Shanghai Composite up 0.01%, Hang Seng up 1.56% ASX up 0.6%
- Commodities : Gold at $2910.35 (-0.73%), Silver at $32.15 (-0.48%), Brent Oil at $76.19 (0.39%), WTI Oil at $73.00 (-0.43%)
- Rates : US 10-year yield at 4.4550, UK 10-year yield at 4.506, Germany 10-year yield at 2.427
News & Data:
- (CAD) Building Permits m/m 11.0% to 1.6% expected
Markets Update:
Asia-Pacific markets traded mixed on Wednesday as investors assessed the impact of U.S. President Donald Trump’s tariffs on regional economies. Meanwhile, U.S. Federal Reserve Chair Jerome Powell reiterated the central bank’s focus on controlling inflation and emphasized that policymakers were in no rush to lower interest rates.
In regional markets, Australia’s S&P/ASX 200 rose 0.5%, while Japan’s Nikkei 225 gained 0.23% after resuming trading post-holiday. However, the Topix dipped 0.2%. South Korea’s Kospi climbed 0.31%, whereas the small-cap Kosdaq declined 0.64%. Hong Kong’s Hang Seng Index surged 1.56%, but mainland China’s CSI 300 slipped 0.13% in volatile trading. India is set to release its January inflation data, with the Nifty 50 opening 0.94% lower and the BSE Sensex falling 0.97%. Investors also await SoftBank Group’s fiscal third-quarter earnings later today.
U.S. markets closed mixed overnight. The S&P 500 edged up 0.03% to 6,068.50, while the Nasdaq Composite dropped 0.36% to 19,643.86. The Dow Jones Industrial Average gained 123.24 points, or 0.28%, to 44,593.65. Powell’s testimony comes amid political uncertainty, as Trump pushes for tariffs on trading partners, creating uncertainty about the administration’s stance toward the Fed.
Powell reaffirmed that the current policy stance, with the benchmark Fed funds rate set between 4.25% and 4.5%, offers flexibility. The Federal Open Market Committee left rates unchanged in its late-January meeting, signaling a cautious approach to monetary policy amid ongoing economic and political uncertainties.
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