Global Markets:
- Asian Stock Markets : Nikkei up 0.28%, Shanghai Composite up 0.21%, Hang Seng up 1.96% ASX down 0.70%
- Commodities : Gold at $2922.35 (0.09%), Silver at $32.5 (0.58%), Brent Oil at $70.7 (-0.5%), WTI Oil at $67.68 (-0.8%)
- Rates : US 10-year yield at 4.240, UK 10-year yield at 4.5255, Germany 10-year yield at 2.4795
News & Data:
- (EUR) Unemployment Rate 6.2% to 6.3% expected
Markets Update:
Asia-Pacific markets were mostly higher on Wednesday as investors analyzed China’s growth and inflation targets amid rising U.S. tariffs and global trade tensions. Australia’s S&P/ASX 200 dropped 0.77%, even as the country’s economy expanded 1.3% year over year in the fourth quarter, surpassing economists’ expectations of 1.2%. Japan’s Nikkei 225 gained 0.37%, while the Topix climbed 0.38%. South Korea’s Kospi rose 1.11%, with the small-cap Kosdaq advancing 0.91%. In China, Hong Kong’s Hang Seng Index jumped 1.65%, and the mainland’s CSI 300 edged up 0.32%.
Investors are closely monitoring China’s annual “Two Sessions” parliamentary gathering, which began Wednesday. During the event, China set its 2025 GDP growth target at approximately 5% and lowered inflation expectations to around 2%. These announcements come as the country aims to balance economic expansion with stability, amid concerns over slowing global demand and domestic economic challenges. The market’s response to these projections will be crucial in determining investor sentiment in the region.
Meanwhile, the U.S. imposed new tariffs on Mexico, Canada, and China. A 25% duty on Mexican and Canadian goods took effect Tuesday, while an additional 10% tariff on Chinese imports raised total new duties on China to 20%. The escalating trade tensions have raised concerns about supply chain disruptions and inflationary pressures, contributing to uncertainty in global financial markets.
Overnight, U.S. markets closed lower. The Dow Jones Industrial Average fell for a second consecutive session, plunging 670.25 points (1.55%) to 42,520.99. The S&P 500 dropped 1.22% to 5,778.15 after recording its worst session of the year earlier. The Nasdaq Composite declined 0.35% to close at 18,285.16. With global markets reacting to trade policies and economic updates, investors remain cautious about potential market volatility in the coming sessions.
Upcoming Events:
- 01:15 PM GMT – USD ADP Non-Farm Employment Change
- 01:30 PM GMT – CAD Labor Productivity
- 02:45 PM GMT – USD Final Services PMI
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