Global Markets:
- Asian Stock Markets : Nikkei down 1.34%, Shanghai Composite down 0.46%, Hang Seng down 0.45%, ASX down 0.30%
- Commodities : Gold at $1844.00 (+0.08%), Silver at $21.78 (-0.52%), Brent Oil at $82.75 (-0.36%), WTI Oil at $76.00 (-0.47%)
- Rates : US 10-year yield at 3.935, UK 10-year yield at 3.645, Germany 10-year yield at 2.541
News & Data:
- (NZD) Official Cash Rate 4.75% vs 4.75% expected
- (AUD) Wage Price Index q/q 0.80% vs 1.00% expected
- (USD) Existing Home Sales 4.00M vs 4.09M expected
- (USD) Flash Manufacturing PMI 47.8 vs 47.4 expected
- (USD) Flash Services PMI 50.5 vs 47.3 expected
- (CAD) Common CPI y/y 6.60% vs 6.50% expected
- (CAD) Retail Sales m/m 0.50% vs 0.50% expected
- (CAD) Core Retail Sales m/m -0.60% vs -0.10% expected
- (CAD) Trimmed CPI y/y 5.10% vs 5.20% expected
- (CAD) Median CPI y/y 5.00% vs 4.90% expected
- (CAD) CPI m/m 0.50% vs 0.70% expected
- (EUR) German ZEW Economic Sentiment 28.1 vs 22.8 expected
- (GBP) Flash Services PMI 53.3 vs 49.2 expected
- (GBP) Flash Manufacturing PMI 49.2 vs 47.5 expected
Markets Update:
Asian stock markets are trading mostly in the red on Wednesday, following the broadly negative cues from global markets overnight, as traders remain concerned about the outlook for U.S. interest rates amid a sharp increase by U.S. treasury yields. Recent economic data has also led to worries the US Fed may raise rates higher than expected and keep them elevated for an extended period.
The Australian stock market is modestly lower on Wednesday, extending the losses in the previous session, with the benchmark S&P/ASX 200 staying above the 7,300 level,as traders remain concerned about the prospect that the US Fed will continue hiking rates to tame stubborn inflation. The Japanese stock market is sharply lower on Wednesday, extending the losses in the previous session, with the Nikkei 225 falling below the 27,100 level.
Crude oil prices were volatile on Tuesday as traders weighed the impact of higher U.S. interest rates against optimism about increased demand from China. The dollar index was flat, but analysts expect interest rate rises to lift the dollar, hurting emerging market equities, which benefited from a falling dollar.
Upcoming Events:
- 09:00 AM GMT – (EUR) German ifo Business Climate
- Day 1 – (All) G20 Meetings
- 07:00 PM GMT – (USD) FOMC Meeting Minutes
