Global Markets:
- Asian Stock Markets : Nikkei up 0.82%, Shanghai Composite down 0.20%, Hang Seng up 1.34%, ASX up 0.73%
- Commodities : Gold at $1976.65 (+0.35%), Silver at $25.125 (+0.12%), Brent Oil at $83.12 (+0.66%), WTI Oil at $79.47 (+0.88%)
- Rates : US 10-year yield at 3.85, UK 10-year yield at 4.303, Germany 10-year yield at 2.432
News & Data:
- (USD) New Home Sales 607K vs 726K expected
- (USD) Crude Oil Inventories -0.6M vs -2.2M expected
- (USD) Federal Funds Rate 5.50% vs 5.50% expected
Markets Update:
Asia-Pacific shares witnessed a mostly positive trend on Thursday following the U.S. Federal Reserve’s decision to raise interest rates to their highest level in more than 22 years. The Fed also left the door open for further tightening, signaling its confidence in the U.S. economic recovery. Investors in the region closely monitored the developments, which had a notable impact on major Asian stock markets.
Japan’s Nikkei 225 led the gains, climbing by 0.82%, while the broader Topix index inched up by 0.53%. South Korea’s Kospi also saw a positive move, trading 0.28% higher. Australian shares reflected the optimism, with the S&P/ASX 200 rising by 0.73%.In the first hour of trade, Hong Kong’s Hang Seng index surged by 1.34%, adding to the positive sentiment across the region.
The contrasting performance in the U.S. markets on the same day added to the uncertainty. The Dow Jones Industrial Average continued its impressive winning streak, marking its best performance since 1987. However, the S&P 500 and the Nasdaq Composite ended the trading day with declines.
The Federal Open Market Committee (FOMC) made the decision to raise its funds rate by a quarter percentage point, establishing a new target range of 5.25% to 5.5%. Notably, this midpoint of the target range would mark the highest level for the benchmark rate since early 2001.
Upcoming Events:
- 12:15 PM GMT – EUR Main Refinancing Rate
- 12:15 PM GMT – EUR Monetary Policy Statement
- 12:30 PM GMT – USD Advance GDP q/q
- 12:30 PM GMT – USD Unemployment Claims
- 12:45 PM GMT – EUR ECB Press Conference
- 2:00 PM GMT – USD Pending Home Sales m/m
