Global Markets:
Asian Stock Markets : Nikkei down 0.03%, Shanghai Composite up 0.69%, Hang Seng up 1.28%, ASX up 0.86%
Commodities : Gold at $1903.15 (-0.41%), Silver at $21.81 (-1.03%), Brent Oil at $78.30 (+1.10%), WTI Oil at $72.16 (+1.16%)
Rates : US 10-year yield at 3.684, UK 10-year yield at 3.540, Germany 10-year yield at 2.450
News & Data:
- (CNY) Unemployment Rate 5.60% vs 5.30% expected
- (CNY) Retail Sales y/y 3.50% vs 3.50% expected
- (CNY) Industrial Production y/y 2.40% vs 2.60% expected
- (CNY) Fixed Asset Investment ytd/y 5.50% vs 4.50% expected
- (NZD) Current Account -9.46B vs -7.64B expected
- (GBP) CB Leading Index m/m -0.60% vs -0.80% previous
- (USD) Core CPI m/m 0.50% vs 0.40% expected
- (USD) CPI y/y 6.00% vs 6.00% expected
- (USD) CPI m/m 0.40% vs 0.40% expected
- (CAD) Manufacturing Sales m/m 4.10% vs -0.40% expected
- (GBP) 10-y Bond Auction 3.50|2.4 vs 3.53|2.4 previous
- (USD) NFIB Small Business Index 90.9 vs 90.3 expected
- (EUR) Italian Industrial Production m/m -0.70% vs -0.30% expected
- (CHF) PPI m/m -0.20% vs 0.50% expected
- (GBP) Unemployment Rate 3.70% vs 3.80% expected
- (GBP) Average Earnings Index 3m/y 5.70% vs 5.70% expected
- (GBP) Claimant Count Change -11.2K vs 12.5K expected
- (AUD) NAB Business Confidence -4 vs 6 previous
- (AUD) Westpac Consumer Sentiment 0.00% vs -6.90% previous
- (NZD) Visitor Arrivals m/m -26.30% vs 55.60% previous
Markets Update:
Asian shares rose sharply on Wednesday, following a relief rally on Wall Street and as U.S. inflation data delivered no nasty surprises, reinforcing hopes that the Federal Reserve will likely go for a smaller rate hike when it meets next week.
Investors piled back into stocks in U.S. markets overnight as fears about contagion in the banking sector following the collapse of Silicon Valley Bank (SVB) last week eased. The S&P 500 rose 2.3% on Tuesday, while the Nasdaq 100 gained 2.3%.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 1.44% higher, having slid 1.7% on Tuesday after SVB’s collapse triggered heavy selling by investors in the last few trading sessions.
Australia’s S&P/ASX 200 index rose 0.33% in early trading, while Japan’s Nikkei was mostly flat. Chinese shares were 0.46% higher, while Hong Kong’s Hang Seng index rose 1.4%.
Data on Wednesday showed China’s industrial output in the first two months of 2023 rose 2.4% from the year earlier, accelerating from a 1.3% annual rise seen in December.
Data on Tuesday showed February’s U.S. consumer price index rising by 0.4%, with a year-on-year gain of 6% – in line with analyst expectations.
As recently as last week, markets were braced for large Fed hikes but the swift collapse of SVB has changed those expectations, with market pricing now leaning for a 25 basis point hike next week.
The yield on the U.S. two-year Treasury notes reversed its dramatic decline and bounced to 4.25%, while that on the ten-year notes climbed to 3.69%.
The dollar index , which tracks the greenback against six major currencies , was little changed at around $97. Crude oil prices bounced back after falling sharply on Tuesday amid concerns over weak demand and oversupply. Gold prices edged lower as investors shifted their focus to riskier assets and awaited more clarity from the Fed. Spot gold was down $2 ,while U.S gold futures fell $3 at $1,779 per ounce .
Upcoming Events:
- 02:50 am GMT – (USD) FOMC Member Bowman Speaks”
- 03:15 am GMT – (NZD) Current Account
- 05:20 am GMT – (JPY) Monetary Policy Meeting Minutes
- 07:30 am GMT – (CNY) Fixed Asset Investment ytd/y
- 07:30 am GMT – (CNY) Industrial Production y/y
- 07:30 am GMT – (CNY) NBS Press Conference
- 07:30 am GMT – (CNY) Retail Sales y/y
- 07:30 am GMT – (CNY) Unemployment Rate
- 12:30 pm GMT – (EUR) German WPI m/m
- 01:15 pm GMT – (EUR) French Final CPI m/m
- 02:30 pm GMT – (EUR) Italian Quarterly Unemployment Rate
- 03:30 pm GMT – (EUR) Industrial Production m/m
- Tentative – (EUR) German 30-y Bond Auction
- 05:45 pm GMT – (CAD) Housing Starts
- 06:00 pm GMT – (GBP) Annual Budget Release
- 06:00 pm GMT – (USD) Core PPI m/m
- 06:00 pm GMT – (USD) Core Retail Sales m/m
- 06:00 pm GMT – (USD) Empire State Manufacturing Index
- 06:00 pm GMT – (USD) PPI m/m
- 06:00 pm GMT – (USD) Retail Sales m/m
- 07:30 pm GMT – (USD) Business Inventories m/m
- 07:30 pm GMT – (USD) NAHB Housing Market Index
- 08:00 pm GMT – (USD) Crude Oil Inventories
