Global Markets:
- Asian Stock Markets : Nikkei down 0.74%, Shanghai Composite up 0.60%, Hang Seng up 0.30%, ASX flat
- Commodities : Gold at $1720.30 (+1.93%), Silver at $14.97 (+0.65%), Brent Oil at $17.59 (-9.00%), WTI Oil at $11.45 (-1.04%)
- Rates : US 10-year yield at 0.594, UK 10-year yield at 0.317, Germany 10-year yield at -0.454
News & Data:
- (GBP) CPI y/y 1.50% vs 1.50% expected
- (AUD) Retail Sales m/m 8.20% vs 0.50% previous
- (EUR) German ZEW Economic Sentiment 28.2 vs -40 expected
- (GBP) Claimant Count Change 12.1K vs 170.0K expected
- ECB’s Lagarde: Primary Market Purchase Of Government Debt Would Undermine Sound Budgetary Policy Requirements
- Oil in London extends losses to drop below $16 a barrel – BBG
Markets Update:
Asian stock markets are mostly lower on Wednesday, extending losses from the previous session following the sharp losses on Wall Street amid the continued slump in crude oil prices and on rising concerns about the economic impact of the coronavirus pandemic. Weak corporate earnings results also dampened investor sentiment.
The Japanese market is declining for a third straight day. The benchmark Nikkei 225 Index is losing 0.74%. Mainland Chinese stocks edged higher on the day, with the Shanghai composite up 0.6% while the Shenzhen composite jumped 1.1%. South Korea’s Kospi also edged 0.9% higher. Over in Australia, the S&P/ASX 200 finished its trading day flat at 5,221.20.
In the currency market, the dollar was broadly supported as investors fled riskier assets for the world’s most liquid currency while putting pressure on oil-linked currencies such as the Norwegian crown and the Canadian dollar.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 100.086 after seeing levels below 99.5 last week. As the difficulties of restarting the U.S. economy sank in, U.S. Treasury yields tumbled, with the five-year note hitting a new record low on rising prices for bonds: one of the safest assets.
Upcoming Events:
- 08:30 AM GMT – (GBP) HPI y/y
- 12:30 PM GMT – (CAD) CPI m/m
- 12:30 PM GMT – (CAD) Common CPI y/y
- 12:30 PM GMT – (CAD) Core CPI m/m
- 12:30 PM GMT – (CAD) Median CPI y/y
- 12:30 PM GMT – (CAD) NHPI m/m
- 12:30 PM GMT – (CAD) Trimmed CPI y/y
- 01:00 PM GMT – (CNY) CB Leading Index m/m
- 01:00 PM GMT – (USD) HPI m/m
- 02:00 PM GMT – (EUR) Consumer Confidence
- 02:30 PM GMT – (USD) Crude Oil Inventories