Global Markets:
- Asian Stock Markets : Nikkei up 1.43%, Shanghai Composite up 0.07%, Hang Seng down 0.39%, ASX up 0.32%
- Commodities : Gold at $1960.45 (+0.09%), Silver at $23.89 (+0.29%), Brent Oil at $74.68 (+0.52%), WTI Oil at $69.70 (+0.40%)
- Rates : US 10-year yield at 3.810, UK 10-year yield at 4.472, Germany 10-year yield at 2.448
News & Data:
- (AUD) NAB Business Confidence -4 vs 0 previous
- (GBP) Claimant Count Change -13.6K vs 21.4K expected
- (GBP) Average Earnings Index 3m/y 6.50% vs 6.10% expected
- (CNY) New Loans 1360B vs 1540B expected
- (EUR) German ZEW Economic Sentiment -8.5 vs -13.4 expected
- (USD) CPI m/m 0.10% vs 0.20% expected
- (USD) CPI y/y 4.00% vs 4.10% expected
- (USD) Core CPI m/m 0.40% vs 0.40% expected
Markets Update:
Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from global markets overnight, as traders reacted to data showing a slowdown in US consumer price inflation, which raised hopes the US Fed will pause rate increases when it announces its monetary policy decision later in the day. The surprise rate cut by the People’s Bank of China is also aiding market sentiment. Asian markets closed mostly higher Tuesday.
The Australian stock market is modestly higher on Wednesday, extending the gains in the previous two sessions, with the benchmark S&P/ASX 200 staying above the 7,100 level, following the broadly positive cues from global markets overnight, with gains across most sectors, led by miners and financial stocks. Mainland Chinese markets slightly rose. In Japan, the Nikkei 225 gained 1.4%, inching closer to the Nikkei’s all time high of just under 39,000 points marked in December 1989.
Crude oil prices rose sharply on Tuesday after the People’s Bank of China announced a surprise rate cut, and the dollar weakened after data showing a slowdown in U.S. inflation raised expectations the Fed will pause rate increases. West Texas Intermediate Crude oil futures for July ended higher by $2.30 or 3.4 percent at $69.42 a barrel.
Upcoming Events:
- 12:30 PM GMT – (USD) Core PPI m/m
- 12:30 PM GMT – (USD) PPI m/m
- 06:00 PM GMT – (USD) FOMC Economic Projections
- 06:00 PM GMT – (USD) FOMC Statement
- 06:00 PM GMT – (USD) Federal Funds Rate
- 06:30 PM GMT – (USD) FOMC Press Conference
- 10:45 PM GMT – (NZD) GDP q/q
