Global Markets:
- Asian Stock Markets : Nikkei up 0.08%, Shanghai Composite up 0.26%, Hang Seng down 0.35%, ASX down 1.71%
- Commodities : Gold at $1643.25 (-0.07%), Silver at $17.25 (+0.38%), Brent Oil at $52.44 (+1.12%), WTI Oil at $47.74 (+1.19%)
- Rates : US 10-year yield at 0.978, UK 10-year yield at 0.387, Germany 10-year yield at -0.642
News & Data:
- (CNY) Caixin Services PMI 26.5 vs 48 expected
- (AUD) GDP q/q 0.50% vs 0.40% expected
- (USD) Federal Funds Rate <1.25% vs <1.75% previous
- (EUR) CPI Flash Estimate y/y 1.20% vs 1.40% expected
- (AUD) Cash Rate 0.50% vs 0.50% expected
- (AUD) Current Account 1.0B vs 2.3B expected
- (AUD) Building Approvals m/m -15.30% vs 1.10% expected
- Hong Kong cuts interest rate after US Fed’s surprise move to bolster sagging economy as coronavirus outbreak spreads worldwide
Markets Update:
Asian stock markets are mostly higher on Wednesday with modest gains despite the weak cues overnight from Wall Street after a surprise interest rate cut by the Federal Reserve.
However, they still seemed to struggle to find their footing on Wednesday and bonds held stunning gains, as an emergency rate cut from the U.S. Federal Reserve seemed to stoke rather than soothe fears over the coronavirus’ widening global economic fallout.
Japan’s Nikkei closed flat, while Australia’s S&P/ASX 200 (AXJO) fell 1.7%. Stocks in Hong Kong and China traded seesawed side of flat. The South Korean market is rising more than 2 percent after the government unveiled a $9.8 billion stimulus package to stem the economic fallout from the coronavirus outbreak. The total number of confirmed coronavirus cases in South Korea has risen to more than 5,300. According to the World health Organization, there are at least 91,700 confirmed coronavirus cases globally.
In currencies, the U.S. dollar clawed back some of its losses on the euro and yen, but was broadly on the back foot. The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.242 after seeing declines from levels above 97.6 yesterday.
Upcoming Events:
- 09:30 AM GMT – (GBP) Final Services PMI
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 03:00 PM GMT – (CAD) BOC Rate Statement
- 03:00 PM GMT – (CAD) Overnight Rate
- 03:00 PM GMT – (USD) ISM Non-Manufacturing PMI
- 03:30 PM GMT – (USD) Crude Oil Inventories
- &more…