Global Markets:
- Asian Stock Markets : Nikkei down 0.45%, Shanghai Composite down 0.54%, Hang Seng down 0.49%, ASX up 0.47%
- Commodities : Gold at $1551.45 (+0.44%), Silver at $17.84 (+0.54%), Brent Oil at $64.36 (-0.20%), WTI Oil at $58.09 (-0.24%)
- Rates : US 10-year yield at 1.806, UK 10-year yield at 0.721, Germany 10-year yield at -0.180
News & Data:
- (USD) Core CPI m/m 0.10% vs 0.20% expected
- (USD) CPI m/m 0.20% vs 0.20% expected
- BOJ Kuroda: Won’t Hesitate to Act
- Mnuchin: U.S. to Review China Tariffs After Phase 2 Signed
Markets Update:
Asian stock markets are mostly lower on Wednesday as investors await the signing of a phase one trade deal between the U.S. and China later today. However, investor sentiment was dampened after Bloomberg reported that despite the signing of the trade deal, tariffs on billions of dollars of Chinese goods are likely to remain in place until after the U.S. presidential election in November.
Chinese mainland shares were also lower after the first hour of trade: The Shanghai composite declined 0.5%, the Shenzhen component was down 0.3%. Australia’s benchmark ASX 200 bucked the downward trend and rose 0.5%, with most sectors trading up. The Nikkei 225 and the Topix index was down 0.5%. In South Korea, the Kospi index slipped 0.4%.
In the currency market, the U.S. dollar traded near flat at 97.384 against a basket off its peers, slipping from levels around 97.562 in the previous session. U.S. Treasury yields ticked down as investors took stock of weaker-than-expected consumer prices and the expected signing of the interim trade deal, with the benchmark 10-year note yield falling to 1.806%.
Oil prices slipped on Wednesday on worries that the pending Phase 1 trade deal between the world’s two biggest crude users may not lead to more fuel demand as Washington keeps tariffs in place. Concerns about increasing supply also pressured prices after a government report on Tuesday said output from the United States will increase in 2020 by more than previously forecast.
Upcoming Events:
- 08:40 AM GMT – (GBP) MPC Member Saunders Speaks
- 09:30 AM GMT – (GBP) CPI y/y
- 09:30 AM GMT – (GBP) PPI Input m/m
- 01:30 PM GMT – (USD) Core PPI m/m
- 01:30 PM GMT – (USD) PPI m/m
- 03:30 PM GMT – (USD) Crude Oil Inventories
- 04:00 PM GMT – (USD) FOMC Member Harker Speaks
- 05:00 PM GMT – (USD) FOMC Member Kaplan Speaks