Global Markets:
- Asian Stock Markets : Nikkei up 0.15%, Shanghai Composite down 0.19%, Hang Seng up 0.96%, ASX up 1.04%
- Commodities : Gold at $1970.30 (-0.06%), Silver at $23.06 (-0.38%), Brent Oil at $78.11 (+0.45%), WTI Oil at $73.32 (+0.70%)
- Rates : US 10-year yield at 3.562, UK 10-year yield at 3.504, Germany 10-year yield at 2.302
News & Data:
- (GBP) BRC Shop Price Index y/y 8.90% vs 8.40% previous
- (GBP) CBI Realized Sales 1 vs -2 expected
- (EUR) Private Loans y/y 3.20% vs 3.60% expected
- (EUR) M3 Money Supply y/y 2.90% vs 3.20% expected
- (EUR) German ifo Business Climate 93.3 vs 91 expected
Markets Update:
Asian markets ended mixed on Tuesday as investor fears over the recent banking turmoil continued to show signs of easing. The S&P/ASX 200 in Australia rose 0.5%, while the Hang Seng index in Hong Kong added 0.36%. However, the Nikkei 225 in Japan fell 0.2% and the Shanghai Composite in China slipped 0.1%.
The banking sector rebounded after First Citizen Bank acquired large parts of the failed Silicon Valley Bank in an auction, easing concerns about contagion across U.S. regional banks. The KBW Bank index rose 2.5% and Deutsche Bank rallied 6.2% on Monday.
In Asia, financial stocks also gained, with Mitsubishi UFJ Financial Group rising 1.4% and Industrial and Commercial Bank of China advancing 0.9%. Energy stocks also outperformed as oil prices jumped more than 5% on Monday amid supply disruptions in Libya and expectations of higher demand as economies reopen. Brent crude futures settled at $74.12 a barrel, while West Texas Intermediate crude futures closed at $70.45 a barrel. In Asia, energy giants such as PetroChina, CNOOC and Woodside Petroleum rose between 1% and 3%.
On the other hand, technology stocks lagged behind as the Nasdaq Composite shed 0.7% on Monday and the Hang Seng Tech index fell more than 3% on Tuesday. Alibaba shares were up 0.5% after Jack Ma reportedly returned to China after roughly one year away, but Tencent, Meituan and JD.com all declined more than 2%. In Japan, Sony dropped 1.8% and SoftBank Group lost 1%.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, was little changed at 93.65, after hitting a four-month high of 93.73 on Monday. The dollar was supported by rising U.S. Treasury yields, which surged on Monday as Fed rate hike bets picked up again. The two-year yield jumped to 4%, while the 10-year yield climbed to 3.5%. Gold prices edged lower as the stronger dollar and higher bond yields weighed on the precious metal’s appeal. Spot gold was down 0.2% at $1,726.80 per ounce, after falling to a nine-month low of $1,686.40 on Monday.
Upcoming Events:
- 08:45 AM GMT – (GBP) BOE Gov Bailey Speaks
- 02:00 PM GMT – (USD) CB Consumer Confidence
- 02:00 PM GMT – (USD) Richmond Manufacturing Index
