Global Markets:
- Asian Stock Markets : Nikkei down 0.13%, Shanghai Composite up 0.11%, Hang Seng down 0.33% ASX down 0.46%
- Commodities : Gold at $2731.35 (0.4%), Silver at $32.4 (-0.58%), Brent Oil at $72.5 (0.46%), WTI Oil at $68.9 (0.49%)
- Rates : US 10-year yield at 4.244, UK 10-year yield at 4.3220, Germany 10-year yield at 2.1160
News & Data:
- (USD) Revised Nonfarm Productivity q/q 2.2% vs 2.3% expected
- (USD) Revised Unit Labor Costs q/q 0.8% vs 1.3% expected
Markets Update:
Asia-Pacific markets presented a mixed performance on Wednesday, following declines in major Wall Street benchmarks as investors awaited critical U.S. inflation data that could influence the Federal Reserve’s interest rate decision.
China commenced its annual economic work conference, outlining policies and growth targets for 2025. Hong Kong’s Hang Seng index rose 0.66%, while mainland China’s CSI 300 index traded flat. In South Korea, the Kospi gained 0.78%, and the Kosdaq surged 2%. This followed the passage of a downsized 2025 budget of 673.3 trillion won ($470.6 billion), marking the first time a spending bill was reduced without ministry approval. Meanwhile, South Korea’s corruption office announced plans to detain President Yoon Seok Yeol if conditions are met, amid a police investigation into martial law imposition. The nation’s unemployment rate remained steady at 2.7% in November.
Japan’s Nikkei 225 dipped 0.132%, and the Topix was nearly flat. Australia’s S&P/ASX 200 fell 0.4%.
In the U.S., the Dow Jones Industrial Average declined for a fourth consecutive day, losing 154.10 points (0.35%) to close at 44,247.83. The S&P 500 and Nasdaq Composite dropped 0.3% and 0.25%, respectively, marking two consecutive days of losses.
Investors are closely watching the November consumer price index report due Wednesday, with forecasts predicting a 12-month inflation rate of 2.7%, slightly above October’s figure and exceeding the Fed’s 2% target. The data could shape decisions during the Federal Reserve’s Dec. 17–18 policy meeting.
Upcoming Events:
- 01:30 PM GMT – USD Core CPI m/m
- 01:30 PM GMT – USD CPI m/m
- 01:30 PM GMT – USD CPI y/y
- 02:45 PM GMT – CAD Overnight Rate
- 03:30 PM GMT – CAD BOC Press Conference
