Global Markets:
- Asian Stock Markets : Nikkei down 0.44%, Shanghai Composite down 0.47%, Hang Seng up 0.24%, ASX up 0.21%
- Commodities : Gold at $1313.85 (+0.38%), Silver at $15.97 (+0.81%), Brent Oil at $61.38 (+0.29%), WTI Oil at $53.41 (+0.19%)
- Rates : US 10-year yield at 2.721, UK 10-year yield at 1.268, Germany 10-year yield at 0.201
News & Data:
- (AUD) Trimmed Mean CPI q/q 0.40% vs 0.40% expected
- (AUD) CPI q/q 0.50% vs 0.40% expected
- (USD) CB Consumer Confidence 120.2 vs 125 expected
- (EUR) Spanish Unemployment Rate 14.50% vs 14.50% expected
- Mixed AU consumer inflation data postpones rate-cut relief
- NY regulator imposes $40m fine on Standard Chartered Bank for attempted FX market rigging
Markets Update:
Asian stock markets are mostly lower on Wednesday following the mixed cues overnight from Wall Street, while higher commodity prices lifted resources stocks. Investors turned cautious ahead of the start of U.S.-China trade talks and the U.S. Federal Reserve’s monetary policy decision due later in the day.
Mainland Chinese markets recovered early losses by the end of the morning session, only to lose again. The Shanghai composite was lower by half a percent while the Shenzhen component lower by a percent. Hong Kong’s Hang Seng index advanced 0.2 percent despite shares of Chinese tech giant Tencent declining 0.12 percent.
Japan’s Nikkei 225 slipped 0.44 percent in afternoon trade while the Topix fell 0.4 percent. The Australian market is modestly higher, paring early gains. Higher commodity prices lifted resources stocks, while the heavyweight financial sector traded weak.
Gold rose 0.15 percent to 8-1/2-month highs of $1,314.3 per ounce, helped by flight-to-quality bids amid various tensions around the world. In addition to U.S.-China trade worries, demand for gold has also been driven by concerns about a disruptive Brexit and political turmoil in Venezuela, which could increase Washington’s diplomatic hostilities towards Russia and China. Oil prices held firm after the United States imposed sanctions on state-owned Venezuelan oil company PDVSA, a move likely to reduce the OPEC member’s crude exports and relieve some global oversupply worries.
Upcoming Events:
- All Day – (EUR) German Prelim CPI m/m
- 10:30 AM GMT – (GBP) Net Lending to Individuals m/m
- 02:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 08:00 PM GMT – (USD) FOMC Statement
- 08:00 PM GMT – (USD) Federal Funds Rate
- 08:30 PM GMT – (USD) FOMC Press Conference
- &more…
