Global Markets:
- Asian Stock Markets : Nikkei down 0.52%, Shanghai Composite down 0.44%, Hang Seng down 0.30%, ASX down 0.82%
- Commodities : Gold at $1491.25 (+0.04%), Silver at $17.79 (-0.21%), Brent Oil at $61.04 (-0.89%), WTI Oil at $55.27 (-0.49%)
- Rates : US 10-year yield at 1.826, UK 10-year yield at 0.713, Germany 10-year yield at -0.353
News & Data:
- (AUD) Trimmed Mean CPI q/q 0.40% vs 0.40% expected
- (AUD) CPI q/q 0.50% vs 0.50% expected
- (GBP) Parliament Brexit Vote Pass
- (USD) CB Consumer Confidence 125.9 vs 128.2 expected
- Japan retail sales jump the most since 2014, outlook murky
- BNZ says Reserve Bank sounding less committed to November rate cut
Markets Update:
Asian stock markets are mostly lower on Wednesday following the negative lead overnight from Wall Street amid caution ahead of the U.S. Federal Reserve’s highly anticipated monetary policy decision later today. The Fed is widely expected to cut interest rates by another quarter point. Meanwhile, a report from Reuters that suggested a phase one trade deal between the U.S. and China may not be signed by a summit in Chile next month dampened sentiment.
The Nikkei 225 in Japan slipped 0.5% in afternoon trade while the Topix index was just fractionally higher. An earlier data release on Wednesday showed Japanese retail sales in September surged 9.1% as compared to a year earlier, above expectations of a 6.9% increase from a Reuters poll. Mainland Chinese shares declined by the afternoon, with the Shanghai composite slipping 0.4% and the Shenzhen component shedding 0.5%. South Korea’s Kospi traded down 0.8% as shares of Samsung Electronics fell more than 1% ahead of the industry heavyweight’s earnings release.
Meanwhile, Australian shares declined as the S&P/ASX 200 slipped 0.8%. Data from the Australian Bureau of Statistics showed Wednesday that the consumer price index for the September quarter rose 0.5%, as compared to a 0.6% increase in the previous quarter.
Fading expectations of aggressive rate cuts by the Fed have lifted the two-year U.S. bond yield to 1.644%, compared with a two-year low of 1.368% in early October. Sterling wobbled after Britain decided to hold an election on Dec. 12 following Prime Minister Boris Johnson winning approval from parliament for an early ballot aimed at breaking the Brexit deadlock.
Oil prices slipped after an industry report that stocks at the Cushing delivery hub for the benchmark rose last week, shrugging off a drop in overall inventories.
Upcoming Events:
- 12:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 12:30 PM GMT – (USD) Advance GDP q/q
- 12:30 PM GMT – (USD) Advance GDP Price Index q/q
- 02:00 PM GMT – (CAD) BOC Monetary Policy Report
- 02:00 PM GMT – (CAD) BOC Rate Statement
- 02:00 PM GMT – (CAD) Overnight Rate
- 02:30 PM GMT – (USD) Crude Oil Inventories
- 03:15 PM GMT – (CAD) BOC Press Conference
- 06:00 PM GMT – (USD) FOMC Statement
- 06:00 PM GMT – (USD) Federal Funds Rate
- 06:30 PM GMT – (USD) FOMC Press Conference
- &more…
