Global Markets:
- Asian Stock Markets : Nikkei up 1.01%, Shanghai Composite down 0.98%, Hang Seng down 1.93%, ASX down 0.17%
- Commodities : Gold at $2031.55 (-0.08%), Silver at $25.73 (-0.39%), Brent Oil at $76.56 (-0.58%), WTI Oil at $72.75 (-0.56%)
- Rates : US 10-year yield at 3.496, UK 10-year yield at 3.802, Germany 10-year yield at 2.318
News & Data:
- (GBP) Halifax HPI m/m -0.30% vs 0.20% expected
- (JPY) 10-y Bond Auction 0.43|3.6 vs 0.46|3.8 previous
- (CNY) USD-Denominated Trade Balance 90.2B vs 69.0B expected
- (CNY) Trade Balance 618B vs 500B expected
- (AUD) Retail Sales m/m 0.40% vs 0.40% expected
- (JPY) Household Spending y/y -1.90% vs 0.90% expected
- (JPY) Average Cash Earnings y/y 0.80% vs 1.00% expected
- (GBP) BRC Retail Sales Monitor y/y 5.20% vs 4.70% expected
- (USD) Final Wholesale Inventories m/m 0.00% vs 0.10% expected
- (EUR) Sentix Investor Confidence -13.1 vs -7.9 expected
- (EUR) German Industrial Production m/m -3.40% vs -1.60% expected
Markets Update:
Asian markets ended Tuesday on a mixed note, as investors remained cautious ahead of the US inflation data due on Wednesday that could influence the Federal Reserve’s interest rate plans. The Hang Seng Index rose 1.2%, led by gains in state-owned enterprises and energy stocks, while the Nikkei 225 fell 0.7%, dragged by a slump in Japan’s real wages and spending data. The CSI300 Index advanced 1.1%, with banks, oil and gas, and defence sectors outperforming.
The price of WTI crude oil jumped to $72.75 from $68.50 on Thursday, while the price of Brent crude rose to $75.30 from $71.50, as Goldman Sachs slashed its oil price forecasts for 2023, citing a market surplus in early next year. The bank cut its Brent oil forecasts for the first and second quarter of 2023 to $90 and $95 a barrel from $115 and $105 per barrel respectively.
Gold prices fell $30.90 to $2,024.80 an ounce, as the US dollar rallied amid a heavy corporate bond supply and a less-than-feared tightening in lending standards by US banks. The dollar rose to 134.81 Japanese yen from 134.14 yen
Upcoming Events:
- 09:30 am GMT – (AUD) Annual Budget Release
- 10:00 am GMT – (USD) NFIB Small Business Index
- 12:30 pm GMT – (USD) FOMC Member Jefferson Speaks
- Tentative – (USD) IBD/TIPP Economic Optimism
- 04:05 pm GMT – (USD) FOMC Member Williams Speaks
