Global Markets:
- Asian Stock Markets : Nikkei up 0.29%, Shanghai Composite down 0.22%, Hang Seng up 0.61%, ASX up 0.49%
- Commodities : Gold at $1853.65 (+0.06%), Silver at $21.16 (+0.10%), Brent Oil at $86.43 (+0.29%), WTI Oil at $80.69 (+0.29%)
- Rates : US 10-year yield at 3.958, UK 10-year yield at 3.899, Germany 10-year yield at 2.736
News & Data:
- (AUD) Cash Rate 3.60% vs 3.60% expected
- (CAD) Ivey PMI 51.6 vs 55.9 expected
- (CHF) CPI m/m 0.70% vs 0.50% expected
Markets Update:
Asian equities gained ground on Tuesday, driven by investors’ optimism that Federal Reserve Chair Jerome Powell’s testimony later in the day would not adopt an overly hawkish tone. However, the recent strength of the US job market and January’s higher-than-anticipated inflation figures could compel the Fed to maintain its hawkish stance. Market watchers are keenly awaiting the release of nonfarm payrolls data for February, which is scheduled for Friday.
In China, the Shanghai Shenzhen CSI 300 and Shanghai Composite indices fluctuated marginally, with Foreign Minister Qin Gang cautioning that if the US does not moderate its rhetoric against China, the two nations could experience increased conflict. China’s imports contracted more sharply than expected, suggesting that local demand remained tepid despite the lifting of most anti-COVID restrictions this year. Meanwhile, Australian equities were weighed down by BHP Group and Rio Tinto, with analysts attributing the decline to China’s target of 5% growth in 2023. In contrast, the Japanese stock market extended its gains for the third consecutive session, with the Nikkei 225 index surpassing the 28,300 level. Traders are optimistic that the Bank of Japan will continue its ultra-loose monetary policy to support the economy, which remains fragile.
Crude oil futures finished higher on Monday, buoyed by Saudi Arabia’s announcement that it expects oil demand to increase in Asia and Europe, leading to a hike in prices for crude shipments to the regions.
Upcoming Events:
- 03:00 PM GMT – (USD) Fed Chair Powell Testifies
- 06:30 PM GMT – (CHF) SNB Chairman Jordan Speaks
- 09:55 PM GMT – (AUD) RBA Gov Lowe Speaks
