Global Markets:
- Asian Stock Markets : Nikkei up 2.22%, Shanghai Composite up 0.31%, Hang Seng up 1.72%, ASX up 1.39%
- Commodities : Gold at $1248.15 (-0.02%), Silver at $14.68 (+0.18%), Brent Oil at $60.86 (+1.10%), WTI Oil at $52.23 (+0.54%)
- Rates : US 10-year yield at 2.893, UK 10-year yield at 1.189, Germany 10-year yield at 0.241
News & Data:
- (AUD) Westpac Consumer Sentiment 0.10% vs 2.80% previous
- (USD) Core PPI m/m 0.30% vs 0.10% expected
- (USD) PPI m/m 0.10% vs 0.00% expected
- (EUR) German ZEW Economic Sentiment -17.5 vs -25 expected
- (GBP) Unemployment Rate 4.10% vs 4.10% expected
- (GBP) Average Earnings Index 3m/y 3.30% vs 3.00% expected
- (AUD) HPI q/q -1.50% vs -1.50% expected
- China: positive truce outcome in sight but could be baby step
- Italy PM Conte Said To Seek Deficit Of 2.05% – 2.08%: Messaggero
Markets Update:
Asian stock markets are in positive territory on Wednesday despite the mixed cues from Wall Street amid optimism about U.S.-China trade relations. News that China plans to cut tariffs on U.S.-made cars and that a Canadian court has granted bail to Chinese telecom giant Huawei’s CFO Meng Wanzhou boosted investor sentiment.
In an interview with Reuters, U.S. President Donald Trump expressed optimism he could strike a trade deal with Chinese President Xi Jinping and also said he would intervene with the U.S. Justice Department in the case against Wanzhou if it would help close a trade deal with China.
Japanese stocks led gains in the region: The Nikkei 225 was up more than 2 percent, while the Topic index was up 1.95 percent in afternoon trade. Over in South Korea, stocks were also higher with the Kospi gaining 1.11 percent. Greater China markets were cheered by the developments. The Shanghai composite inched up 0.3 percent, but the Shenzhen composite gave up earlier gains to trade near flat. In Australia, the ASX 200 index gained 1.4 percent
In currency markets, sterling was pinned near 20-month lows amid reports Conservative lawmakers could vote on a no confidence motion in May’s leadership as soon as Wednesday night. Investors were also looking ahead to the U.S consumer price report later on Wednesday where an expected slowdown in headline inflation would only reinforce speculation of fewer rate hikes from the Federal Reserve.
Oil bounced after industry data showed a surprisingly large draw on stockpiles and amid talk a recent OPEC-led supply cut could support prices in 2019.
Upcoming Events:
- 02:30 PM GMT – (USD) CPI m/m
- 02:30 PM GMT – (USD) Core CPI m/m
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