Global Markets:
- Asian Stock Markets : Nikkei down 0.90%, Shanghai Composite down 0.59%, Hang Seng up 0.40% ASX up 1.20%
- Commodities : Gold at $2061.5 (-0.32%), Silver at $23.37 (-0.74%), Brent Oil at $80.65 (0.16%), WTI Oil at $76.07 (0.27%)
- Rates : US 10-year yield at 3.94, UK 10-year yield at 3.817, Germany 10-year yield at 2.164
News & Data:
- (USD) ADP Non-Farm Employment Change 107k vs 148K expected
- (CAD) GDP m/m 0.2% vs 0.1% expected
- (USD) Employment Cost Index q/q 0.9% vs 1.0% expected
- (USD) Crude Oil Inventories 1.2M vs -0.8M expected
Markets Update:
On Thursday, Hong Kong and Korea saw gains in share trading, while Japanese equity benchmarks underperformed. Paytm shares in Mumbai fell by the maximum limit of 20% following a directive from Indian financial authorities to stop new deposits from March.
The Caixin China General Manufacturing Purchasing Managers’ Index released on Thursday indicated a third consecutive month of factory activity expansion in January, in contrast to official data suggesting a fourth monthly contraction. Other private surveys for manufacturing activity in Asia (excluding China and Japan) hinted that the worst of the 2023 manufacturing slowdown might be over.
Late on Wednesday, the U.S. Federal Reserve signaled its reluctance to cut rates in March. Fed Chair Jerome Powell expressed doubts about the committee’s confidence in the inflation trajectory by the March meeting to consider interest rate cuts.
In the Asia-Pacific region, the S&P/ASX 200 in Australia closed down 1.2%, breaking an eight-day winning streak. Japan’s Nikkei 225 declined by 0.9%, the Topix slipped by 0.7%, South Korea’s Kospi climbed 1.5%, and the Kosdaq dropped by 0.8%. In Hong Kong, the Hang Seng index rose by 0.4%, and China’s CSI 300 rebounded by 0.8% from near five-year lows.
In the U.S., after the Fed announcement, all three major indexes experienced losses. The Nasdaq Composite led the decline, falling by 2.23%, while the broad-market S&P 500 dropped by 1.61%, and the Dow Jones Industrial Average fell by 0.82%.
Upcoming Events:
- 1:30 PM GMT – USD Unemployment Claims
- 1:30 PM GMT – USD Prelim Nonfarm Productivity q/q
- 1:30 PM GMT – USD Prelim Unit Labor Costs q/q
- 2:30 PM GMT – CAD Manufacturing PMI
