Global Markets:
- Asian Stock Markets : Nikkei down 0.07%, Shanghai Composite down 0.51%, Hang Seng down 0.20% ASX up 0.78%
- Commodities : Gold at $2668.35 (-0.04%), Silver at $30.84 (-0.38%), Brent Oil at $74.09 (-0.16%), WTI Oil at $70.4 (-0.39%)
- Rates : US 10-year yield at 4.401, UK 10-year yield at 4.4400, Germany 10-year yield at 2.2430
News & Data:
- (USD) Flash Services PMI 48.3 vs 49.4 expected
- (USD) Flash Manufacturing PMI 58.5 vs 55.7 expected
Markets Update:
Asia-Pacific markets opened mixed on Tuesday, reflecting Wall Street’s uneven performance as investors await the U.S. Federal Reserve’s decision. Australia’s S&P/ASX 200 gained 0.73%, while Japan’s Nikkei 225 and Topix rose slightly by 0.12% and 0.11%, respectively. In contrast, South Korea’s Kospi dropped 1%, and the Kosdaq declined by 0.92%.
In China, leaders have announced plans to raise the 2025 budget deficit to 4% of GDP to sustain economic growth at 5% for the coming year, according to Reuters. Following this, China’s CSI 300 increased by 1.1%, while Hong Kong’s Hang Seng Index remained relatively flat.
Overnight in the U.S., the Nasdaq Composite reached a record high, rising 1.24% to 20,173.89, driven by a tech rally. The S&P 500 also edged up 0.38% to 6,074.08. However, the Dow Jones Industrial Average dropped 110.58 points, or 0.25%, closing at 43,717.48. This marked its eighth consecutive loss, the longest since 2018.
Investors are now focused on the Federal Reserve’s Dec. 18 meeting, where a 25-basis-point rate cut is widely expected, with the CME FedWatch Tool indicating a 98.2% probability.
Meanwhile, Nvidia, a leading AI chipmaker, bucked the tech rally with a 1.7% decline, pushing its stock into correction territory after falling over 10% from its November peak.
Upcoming Events:
- 01:30 PM GMT – USD Core Retail Sales m/m
- 01:30 PM GMT – USD Retail Sales m/m
- 01:30 PM GMT – CAD CPI m/m
- 01:30 PM GMT – CAD Median CPI y/y
- 01:30 PM GMT – CAD Trimmed CPI y/y
