Global Markets:
Asian Stock Markets : Nikkei up 0.20%, Shanghai Composite up 0.02%, Hang Seng down 0.42%, ASX up 0.13%
Commodities : Gold at $1973.85 (+1.60%), Silver at $24.28 (+2.84%), Brent Oil at $83.15 (+0.37%), WTI Oil at $76.75 (+0.44%)
Rates : US 10-year yield at 3.407, UK 10-year yield at 3.259, Germany 10-year yield at 2.236
News & Data:
- (USD) Federal Funds Rate 4.75% vs 4.75% expected
- (USD) JOLTS Job Openings 11.01M vs 10.28M expected
- (USD) ISM Manufacturing PMI 47.4 vs 48 expected
- (USD) ADP Non-Farm Employment Change 106K vs 176K expected
- (EUR) Core CPI Flash Estimate y/y 5.20% vs 5.10% expected
- (EUR) CPI Flash Estimate y/y 8.50% vs 9.00% expected
Markets Update:
Asian stock markets are trading mostly higher on Thursday, following the broadly positive cues from Wall Street overnight, as traders reacted positively to the US Fed’s decision not to raise its benchmark lending rate more than widely expected. The central bank raised its interest rates by another quarter point and signaled further rate hikes. Asian Markets closed mostly higher on Wednesday. The latest interest rate hike by the Fed comes after the central bank raised rates by 75 basis points in November and by 50 basis points in December. The Fed also said it anticipates ongoing increases in interest rates will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.
The Hong Kong Monetary Authority tightened its monetary policy on Thursday, in tandem with the decision of the US Federal Reserve.The HKMA adjusted the Base Rate upwards to 5.00 percent from 4.75 percent with immediate effect.
The Japanese stock market is modestly higher in choppy trading on Thursday, extending the gains in the previous session, with the Nikkei 225 moving above the 27,400 level, following the mostly positive cues from Wall Street overnight, with gains among market heavyweights and technology stocks.
The Australian stock market is modestly higher on Thursday, extending the gains in the previous session, with the benchmark S&P/ASX 200 staying above the 7,500 level to a nine-month highs, following the broadly positive cues from Wall Street overnight, with strong gains in gold mining and technology stocks partially offset by weakness in iron ore mining and energy stocks.
Crude oil futures fell to a three-week low on Wednesday, weighed down by data showing an increase in crude inventories last week in the U.S. In the currency market, the U.S. dollar is trading in the mid-128 yen-range on Thursday.
Upcoming Events:
- 12:00 pm GMT – (GBP) BOE Monetary Policy Report”
- 12:00 pm GMT – (GBP) MPC Official Bank Rate Votes
- 12:00 pm GMT – (GBP) Monetary Policy Summary
- 12:00 pm GMT – (GBP) Official Bank Rate
- 01:15 pm GMT – (EUR) Main Refinancing Rate
- 01:15 pm GMT – (EUR) Monetary Policy Statement
- 01:30 pm GMT – (USD) Unemployment Claims
- 01:45 pm GMT – (EUR) ECB Press Conference
- 03:15 pm GMT – (EUR) ECB President Lagarde Speaks
- 05:30 pm GMT – (CHF) SNB Chairman Jordan Speaks
