10th August 2022 Wednesday: Asian markets trade lower on anticipation of US data releases

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.72%, Shanghai Composite down 0.58%, Hang Seng down 2.24%, ASX down 0.33%
  • Commodities : Gold at $1804.95 (-0.41%), Silver at $20.35 (-0.63%), Brent Oil at $95.88 (-0.45%), WTI Oil at $89.97 (-0.59%)
  • Rates : US 10-year yield at 2.799, UK 10-year yield at 1.991, Germany 10-year yield at 0.918

News & Data:

  • (CNY) CPI y/y 2.70% vs 2.90% expected
  • (JPY) PPI y/y 8.60% vs 8.50% expected
  • (USD) IBD/TIPP Economic Optimism 38.1 vs 40.2 expected
  • (USD) Prelim Unit Labor Costs q/q 10.80% vs 9.40% expected
  • (USD) Prelim Nonfarm Productivity q/q -4.60% vs -4.60% expected
  • (USD) NFIB Small Business Index 89.9 vs 89.5 expected
  • (GBP) 30-y Bond Auction 2.36|2.5 vs 2.53|2.2 previous

Markets Update:

Asian stock markets are trading mostly lower on Wednesday, following the broadly negative cues from Wall Street overnight, with technology stocks tumbling to mirror their peers on the tech-heavy Nasdaq. Traders also make their moves cautiously ahead of the release of crucial U.S. inflation data later in the day, which could impact the outlook for interest rates.

Hong Kong’s Hang Seng index fell 2.2%, with the Hang Seng Tech index down 3.11%. Heavyweights Meituan and JD.com fell 4.2% and 4.29% respectively. Heath care and consumer stocks also dragged the Hang Seng lower, according to Eikon data.The Australian stock market is modestly lower on Wednesday, giving up some of the gains in the previous three sessions, with the benchmark S&P/ASX 200 staying above the 7,000 mark, following the broadly negative cues from Wall Street overnight, dragged down by tumbling technology stocks, which mirrored their peers on the tech-heavy Nasdaq. Traders also remain cautious ahead of the release of crucial U.S. inflation data later in the day.

Crude oil futures settled modestly lower Tuesday on concerns about outlook for energy demand. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 106.270, holding below the 106.5 level.

Upcoming Events:

  • 12:30 PM GMT – (USD) CPI m/m
  • 12:30 PM GMT – (USD) Core CPI m/m