16th August 2022 Tuesday: Asian markets follow Wall St higher.

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.03%, Shanghai Composite up 0.24%, Hang Seng up 0.07%, ASX up 0.56%
  • Commodities : Gold at $1796.65 (-0.08%), Silver at $20.22 (-0.27%), Brent Oil at $94.29 (-0.85%), WTI Oil at $88.92 (-0.55%)
  • Rates : US 10-year yield at 2.784, UK 10-year yield at 2.026, Germany 10-year yield at 0.908

News & Data:

  • (USD) Empire State Manufacturing Index -31.3 vs 5.1 expected
  • (CNY) Retail Sales y/y 2.70% vs 5.00% expected

Markets Update:

 Asian stock markets are trading mostly higher on Tuesday, following the broadly positive cues from global markets overnight, amid recent soft inflation data that raised speculation the US Fed might slow down the pace of monetary tightening. Traders looked ahead to the Fed minutes, due out on Wednesday, for clues about the pace of rate hikes in the future.

The Australian stock market is significantly higher on Tuesday, extending the gains in the previous session, with the benchmark S&P/ASX 200 moving above the 7,100 level, following the broadly positive cues from global markets overnight, with gains in financial stocks partially offset by weakness in resources and energy stocks. Japanese stocks were awashed in a sea of red. Nissan, Honda and Toyota lost roughly 1% each. Mainland China markets thrived. The Shanghai Composite gained 0.37% and the Shenzhen Component was up 0.491%.

Fragile demand outlook hit oil prices as they extended losses from the previous session. On Tuesday, the dollar index, which measures the greenback against six major peers, held steady at 106.53, just below the previous session’s peak of 106.55, the strongest since Monday of last week.

Upcoming Events:

  • 12:30 PM GMT – (CAD) CPI m/m
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  • 12:30 PM GMT – (CAD) Median CPI y/y
  • 12:30 PM GMT – (CAD) Trimmed CPI y/y