Global Markets:
- Asian Stock Markets : Nikkei down 0.70%, Shanghai Composite up 0.02%, Hang Seng up 1.05%, ASX up 0.20%
- Commodities : Gold at $1979.90 (-0.08%), Silver at $23.64 (-0.15%), Brent Oil at $75.95 (-0.45%), WTI Oil at $71.46 (-0.39%)
- Rates : US 10-year yield at 3.658, UK 10-year yield at 4.233, Germany 10-year yield at 2.367
News & Data:
- (AUD) GDP q/q 0.20% vs 0.30% expected
- (CAD) Ivey PMI 53.5 vs 57.2 expected
- (AUD) Cash Rate 4.10% vs 3.85% expected
Markets Update:
Asian stock markets are trading mixed on Wednesday, following the broadly positive cues from global markets overnight, as traders remain cautious and apprehensive over the outlook for interest rates as they continue to look ahead to next week’s US Federal Reserve monetary policy meeting. The Fed is widely expected to pause its recent series of interest rate hikes. There are hopes for a pause in Fed hikes at both the June and July policy meetings. CME Group’s FedWatch Tool is currently indicating a 79.4 percent chance the Fed will leave rates unchanged next week but a 52.7 percent chance of another quarter point increase in July.
The Japanese stock market is sharply lower on Wednesday after opening in the green, snapping a four-session winning streak, with the Nikkei 225 falling below the 32,100 level and off the recent 33-year highs, as traders continued to book profits after the recent rally in the markets. In Australia, the S&P/ASX 200 rose 0.2%, as Australia’s gross domestic product grew 2.3% in the first quarter of the year, the slowest rate of growth in 1½ years. Hong Kong’s Hang Seng index traded 1.05% higher in its open, while mainland Chinese markets were also higher.
Oil prices fell in Asian trade on Wednesday as weak Chinese trade data spurred more fears of slowing demand in the country, with prices having now reversed all gains made earlier this week on the back of supply cuts by the OPEC.
Upcoming Events:
- 07:00 AM GMT – (CHF) Foreign Currency Reserves
- 02:00 PM GMT – (CAD) BOC Rate Statement
- 02:00 PM GMT – (CAD) Overnight Rate
