18th August 2022 Thursday: Asian traders in holding pattern after Fed minutes

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.96%, Shanghai Composite down 0.46%, Hang Seng down 0.95%, ASX down 0.21%
  • Commodities : Gold at $1776.75 (0.00%), Silver at $19.60 (-0.67%), Brent Oil at $93.72 (+0.07%), WTI Oil at $88.05 (-0.07%)
  • Rates : US 10-year yield at 2.888, UK 10-year yield at 2.316, Germany 10-year yield at 1.110

News & Data:

  • (AUD) Unemployment Rate 3.40% vs 3.50% expected
  • (AUD) Employment Change -40.9K vs 26.5K expected
  • (USD) Retail Sales m/m 0.00% vs 0.10% expected
  • (USD) Core Retail Sales m/m 0.40% vs -0.10% expected
  • (GBP) CPI y/y 10.10% vs 9.80% expected

Markets Update:

Asian stock markets are trading mostly lower on Thursday, following the broadly negative cues from global markets overnight, as worries about slowing growth and soaring inflation continue to weigh on market sentiment. The US Fed minutes also reaffirmed the central bank’s plans to continue raising interest rates in an effort to return inflation to its 2 percent objective.

The Japanese stock market is significantly lower on Thursday, giving up the gains in the previous session, with the Nikkei 225 falling below the 29,000 mark, following the broadly negative cues from global markets overnight, with weakness across most sectors, particularly technology stocks, which tracked their peers on tech-heavy Nasdaq. The Australian stock market is modestly lower on Thursday, giving up some of the gains in the previous three sessions, with the benchmark S&P/ASX 200 falling a tad below the 7,100 level, following the broadly negative cues from global markets overnight, with the losses led by gold miners and technology stocks.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, is up about 0.8% this week — putting the brakes on a pullback that began about a month ago. Crude oil prices climbed higher Wednesday, lifted by data showing declines in crude and gasoline inventories in the U.S. last week.

Upcoming Events:

  • 12:30 PM GMT – (USD) Philly Fed Manufacturing Index
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 02:00 PM GMT – (USD) Existing Home Sales
  • 05:20 PM GMT – (USD) FOMC Member George Speaks