Wednesday 25th March: Markets raise on US stimulus news.

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei up 8.13%, Shanghai Composite up 2.17%, Hang Seng up 3.97%, ASX up 5.54%
  • Commodities : Gold at $1646.35 (-0.87%), Silver at $14.44 (+1.25%), Brent Oil at $27.55 (+1.47%), WTI Oil at $24.49 (+2.00%)
  • Rates : US 10-year yield at 0.853, UK 10-year yield at 0.466, Germany 10-year yield at -0.334

News & Data:

  • (GBP) PPI Input m/m -1.20% vs -2.00% expected
  • (GBP) CPI y/y 1.70% vs 1.70% expected
  • (USD) Richmond Manufacturing Index 2 vs -10 expected
  • (USD) Flash Services PMI 39.1 vs 44.1 expected
  • (USD) Flash Manufacturing PMI 49.2 vs 45.1 expected
  • (GBP) Flash Services PMI 35.7 vs 45 expected
  • (GBP) Flash Manufacturing PMI 48 vs 45.1 expected
  • (EUR) Flash Services PMI 28.4 vs 40 expected
  • (EUR) Flash Manufacturing PMI 44.8 vs 40.1 expected
  • (EUR) German Flash Services PMI 34.5 vs 43 expected
  • (EUR) German Flash Manufacturing PMI 45.7 vs 40.1 expected
  • (EUR) French Flash Manufacturing PMI 42.9 vs 39.4 expected
  • (EUR) French Flash Services PMI 29 vs 39.6 expected

Markets Update:

Asian stock markets are notably higher on Wednesday, extending the rally from the previous session, following the overnight gains on Wall Street amid indications U.S. lawmakers are moving closer to passing a massive fiscal stimulus bill worth $2 trillion to combat the economic impact of the coronavirus pandemic.

The Nikkei 225 in Japan led gains among major markets in the region, adding 8.0%. The Topix index rose 6.9% to end its trading day at 1,424.62. South Korea’s Kospi also saw robust gains as it jumped 5.9%. Mainland Chinese stocks advanced on the day, with the Shanghai composite up 2.2% while the Shenzhen composite rose 2.9%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 101.472 after rising from levels below 100 last week. Crude oil prices moved higher on Tuesday, rising further after gains in the previous session thanks to the Federal Reserve’s massive asset-buying scheme. The market remained pressured by a flood of supply after Saudi Arabia started a price war earlier this month, a move that dealt a crushing blow to markets already reeling from the pandemic.

Upcoming Events:

  • 09:00 AM GMT – (EUR) German Final ifo Business Climate
  • 09:30 AM GMT – (GBP) CPI y/y
  • 09:30 AM GMT – (GBP) PPI Input m/m
  • 12:30 PM GMT – (USD) Core Durable Goods Orders m/m
  • 12:30 PM GMT – (USD) Durable Goods Orders m/m