Global Markets:
- Asian Stock Markets : Nikkei up 0.29%, Shanghai Composite down 1.24%, Hang Seng down 1.42%, ASX down 0.46%
- Commodities : Gold at $1917.50 (+0.04%), Silver at $22.85 (+0.51%), Brent Oil at $85.58 (+0.97%), WTI Oil at $81.42 (+0.94%)
- Rates : US 10-year yield at 4.285, UK 10-year yield at 4.727, Germany 10-year yield at 2.625
News & Data:
- (EUR) Final Core CPI y/y 5.5% vs 5.5% expected
- (EUR) Final CPI y/y 5.3% vs 5.3% expected
Markets Update:
Asia-Pacific markets displayed a diverse range of outcomes following China’s decision on Monday to lower its one-year loan prime rate (LPR), while maintaining stability in the five-year rate. The one-year LPR saw a reduction of 10 basis points, settling at 3.45%, whereas the five-year LPR remained constant at 4.2%, serving as a reference point for mortgage rates.
Market analysts, in a survey conducted by Reuters, had unanimously predicted rate cuts in both categories, responding to China’s unexpected decrease in the medium-term lending facility rate the previous week. However, Hong Kong’s Hang Seng index slipped by 1.42%, paralleled by a 0.68% decline in mainland Chinese markets represented by the CSI 300.
Conversely, some markets performed well. In Australia, the S&P/ASX 200 declined by 0.46%, hitting its lowest point since July 11 at 7,115.5. Japan’s Nikkei 225 rebounded, ending with a 0.29% gain at 31,565.64, accompanied by a 0.24% rise in the Topix index, which finished at 2,241.49. South Korea’s Kospi halted its six-day losing streak with a 0.17% increase to reach 2,508.8, and the Kosdaq surged by 1.3% to close at 888.71.
In the United States on Friday, the major indices depicted mixed results. The Dow Jones Industrial Average increased by 0.07%, while the S&P 500 experienced a marginal 0.01% dip, and the Nasdaq Composite slipped by 0.2%. This marked the third consecutive week of losses for both the S&P and Nasdaq, a trend not observed since February and December respectively.
Upcoming Events:
- 10:00 AM GMT – EUR German Buba Monthly Report
- 12:30 PM GMT – CAD NHPI m/m
