Global Markets:
- Asian Stock Markets : Nikkei down 1.74%, Shanghai Composite down 0.96%, Hang Seng down 1.54%, ASX down 1.72%
- Commodities : Gold at $1721.70 (+0.31%), Silver at $15.77 (+0.62%), Brent Oil at $29.71 (+1.78%), WTI Oil at $25.84 (+2.17%)
- Rates : US 10-year yield at 0.617, UK 10-year yield at 0.199, Germany 10-year yield at -0.547
News & Data:
- (AUD) Unemployment Rate 6.20% vs 8.30% expected
- (AUD) Employment Change -594.3K vs -575.0K expected
- (USD) PPI m/m -1.30% vs -0.50% expected
- (USD) Core PPI m/m -0.30% vs -0.10% expected
- (GBP) Manufacturing Production m/m -4.60% vs -6.00% expected
- (GBP) GDP m/m -5.80% vs -7.90% expected
- (GBP) Prelim GDP q/q -2.00% vs -2.60% expected
Markets Update:
Asian stock markets are in negative territory on Thursday amid rising concerns about the economic impact of the coronavirus pandemic after the U.S. Federal Reserve Chairman Jerome Powell warned of a prolonged recession.
Powell said that the coronavirus crisis raises longer-term concerns that could result in an extended period of low productivity growth and stagnant incomes. He added the Federal Reserve is not considering adopting negative interest rates.
Mainland Chinese stocks closed lower, with the Shanghai composite down 1%. Hong Kong’s Hang Seng index fell 1.5%. Elsewhere, the S&P/ASX 200 in Australia closed 1.7% lower. In Japan, the Nikkei 225 also fell 1.7%.
Crude oil prices drifted lower on Wednesday despite data showing a drop in U.S. stockpiles as well as a decline in output last week. Elsewhere a strong greenback pushed the kiwi to a three-week low of $0.5968 and had the euro and pound under pressure.
Upcoming Events:
- 10:30 AM GMT – (GBP) BOE Gov Bailey Speaks
- 12:30 PM GMT – (USD) Unemployment Claims
- 02:00 PM GMT – (CAD) BOC Financial System Review
- 02:30 PM GMT – (CAD) BOC Gov Poloz Speaks