Global Markets:
- Asian Stock Markets : Nikkei up 0.26%, Shanghai Composite up 1.00%, Hang Seng up 4.23%, ASX down 0.09%
- Commodities : Gold at $1840.05 (+0.18%), Silver at $21.14 (+0.34%), Brent Oil at $83.98 (+0.64%), WTI Oil at $77.56 (+0.66%)
- Rates : US 10-year yield at 3.959, UK 10-year yield at 3.860, Germany 10-year yield at 2.694
News & Data:
- (AUD) GDP q/q 0.50% vs 0.80% expected
- (AUD) CPI y/y 7.40% vs 8.10% expected
- (USD) CB Consumer Confidence 102.9 vs 108.5 expected
- (USD) Richmond Manufacturing Index -16 vs -5 expected
- (CAD) GDP m/m -0.10% vs 0.00% expected
Markets Update:
Asian stock markets are trading mostly higher on Wednesday, despite the broadly negative cues from Wall Street overnight, as traders book some profits and seemed reluctant to make significant moves amid ongoing concerns about the outlook for interest rates. They await upcoming data that is expected to provide further clues about interest rates hikes. Asian markets closed mostly higher on Tuesday.
The Australian stock market is modestly higher on Wednesday, extending the gains in the previous session, with the benchmark S&P/ASX 200 staying below the 7,300 level, despite the broadly negative cues from Wall Street overnight, as gains in mining and energy stocks were partially offset by weakness in financial and technology stocks. The S&P/ASX 200 was down marginally to close at 7251.6 after Australia’s gross domestic product for the fourth quarter of 2022 came in at 2.7% on an annualized basis.
Hotter-than-expected inflation readings in Europe overnight drove bond selling, before an unexpected dip in U.S. confidence figures offered a glimmer of hope that rate hikes are biting and are perhaps within striking distance of peaking. Crude oil prices showed a strong move back to the upside on Tuesday following the pullback a day earlier, thanks to optimism about increased demand from China.
Upcoming Events:
- 10:00 AM GMT – (GBP) BOE Gov Bailey Speaks
- 03:00 PM GMT – (USD) ISM Manufacturing PMI
