Global Markets:
- Asian Stock Markets : Nikkei up 2.01%, Shanghai Composite down 0.09%, Hang Seng up 0.94% ASX up 1.65%
- Commodities : Gold at $2043.45 (0.34%), Silver at $24.89 (0.24%), Brent Oil at $77.29 (0.12%), WTI Oil at $72.3 (-0.03%)
- Rates : US 10-year yield at 4.195, UK 10-year yield at 4.054, Germany 10-year yield at 2.264
News & Data:
- (USD) ISM Services PMI 52.7 vs 52.2 expected
- (USD) JOLTS Job Openings 8.73M vs 9.31M expected
Markets Update:
Asia-Pacific markets rebounded strongly, led by Japan’s markets after a widespread sell-off. Investors focused on Australia’s third-quarter GDP and Japan’s December Reuters Tankan survey, indicating improved sentiment among major Japanese manufacturers. The Tankan survey, conducted quarterly by the Bank of Japan, is a critical economic gauge, while the Reuters monthly poll is seen as a leading indicator for the BOJ’s official survey.
Japan’s Nikkei 225 surged by 2.04%, closing at 33,445.9, marking the most substantial gains among major Asian indices. Australia’s S&P/ASX 200 rose by 1.65%, reaching 7,178.4, its highest point since September 19. Australia’s economy expanded by 2.1% year-on-year in Q3, surpassing economists’ expectations.
South Korea’s Kospi made a modest gain of 0.2%, while the smaller Kosdaq surged by 0.83%. Hong Kong’s Hang Seng index rebounded by 1.06% from a one-year low, and China’s mainland CSI 300 index saw a 0.52% increase after hitting four-year lows on Tuesday.
In contrast, the U.S. experienced declines with the Dow Jones Industrial Average falling by 0.22%, and the S&P 500 dropping marginally by 0.06%. However, the Nasdaq Composite closed with a 0.31% gain at 14,229.91, driven by strong performance in technology shares, counteracting the overall downward trend in the U.S. markets.
Upcoming Events:
- 1:15 PM GMT – USD ADP Non-Farm Employment Change
- 1:30 PM GMT – USD Trade Balance
- 3:00 PM GMT – CAD BOC Rate Statement
- 3:00 PM GMT – CAD Overnight Rate
