Global Markets:
- Asian Stock Markets : Nikkei down 2.82%, Shanghai Composite down 0.78%, Hang Seng down 2.17%, ASX down 3.05%
- Commodities : Gold at $1743.15 (+1.30%), Silver at $18.05 (+1.40%), Brent Oil at $40.13 (-3.83%), WTI Oil at $37.97 (-4.12%)
- Rates : US 10-year yield at 0.698, UK 10-year yield at 0.225, Germany 10-year yield at -0.377
News & Data:
- (USD) Federal Funds Rate <0.25% vs <0.25% expected
- (USD) Core CPI m/m -0.10% vs 0.00% expected
- (USD) CPI m/m -0.10% vs 0.00% expected
- BoJ’s Kuroda: Corporate Funding In Japan Remains Under Strong Stress
- Lane: ECB ready to do everything to restart economy
Markets Update:
Asian stock markets are mostly lower on Thursday after the U.S. Federal Reserve projected a sharp contraction for the U.S. economy this year due to the coronavirus pandemic and indicated that interest rates are likely to remain at current near-zero levels through 2022.
Powell confirmed the Fed was studying yield curve control, a form of easing already employed by Japan and Australia. In addition, the Organisation for Economic Cooperation and Development or OECD said in its latest Economic Outlook that the global economy is undergoing the deepest recession since the Great Depression in the 1930s, due to the COVID-19 pandemic.
The Nikkei 225 in Japan bled red, slipping 2.8% while the Topix index shed 2.2%. Shares in Australia were among the biggest losers regionally, with S&P/ASX 200 dropping 3.1%. Hong Kong’s Hang Seng index was 2.2%. Mainland Chinese stocks fell on the day, with the Shanghai composite and Shenzhen component both lost 0.8%.
Oil prices turned lower amid renewed concerns about demand and after U.S. data showed crude inventories had risen to record highs. The dollar later steadied as risk appetite waned and stocks came off. It was last at 107.20 yen, after hitting a one-month trough at 106.87. The risk of more easing initially had the U.S. dollar under pressure, seeing it touch a three-month low on a basket of currencies at 95.714.
Upcoming Events:
- All Day – (EUR) Eurogroup Meetings
- 12:30 PM GMT – (USD) Core PPI m/m
- 12:30 PM GMT – (USD) PPI m/m
- 12:30 PM GMT – (USD) Unemployment Claims