28th September Wednesday 2022: Asian markets continue to lose

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.50%, Shanghai Composite down 1.58%, Hang Seng down 3.39%, ASX down 0.53%
  • Commodities : Gold at $1628.40 (-0.48%), Silver at $18.10 (-1.30%), Brent Oil at $83.72 (-1.36%), WTI Oil at $77.33 (-1.49%)
  • Rates : US 10-year yield at 3.978, UK 10-year yield at 4.544, Germany 10-year yield at 2.236

News & Data:

  • (USD) Richmond Manufacturing Index 0 vs -10 expected
  • (USD) New Home Sales 685K vs 500K expected
  • (USD) CB Consumer Confidence 108 vs 104 expected
  • (USD) Durable Goods Orders m/m -0.20% vs 0.10% expected
  • (USD) Core Durable Goods Orders m/m 0.20% vs 0.30% expected

Markets Update:

Asian stock markets are mostly lower on Wednesday, following the mixed to negative cues from global markets overnight, as traders are cautious and remained worried that efforts by central banks around the world to curb inflation may trigger a global recession. Uncertainty due to the ongoing conflict in Ukraine is also weighing on market sentiment.

Hong Kong’s Hang Seng index dropped 3.4% in the final hour of trade, with the Hang Seng Tech index down 3.8%. In mainland China, the Shanghai Composite was 1.6% lower. Chinese stocks are trading close to five-month lows, but have fared somewhat better than their Asian peers this year on stimulus measures by the government. The Japanese stock market is sharply lower on Wednesday, giving up the small gains in the previous session, with the Nikkei 225 falling nearly 600 points to below the 26,000 mark, following the mixed cues from Wall Street overnight, with weakness across all sectors as trades react to the release of the minutes from the Bank of Japan’s monetary policy meeting and the weakening yen.

Crude oil prices climbed higher on Tuesday on reports producers have slowed down production in the U.S. Gulf of Mexico ahead of Hurricane Ian. The U.S. dollar index also strengthened by 0.33%, trading at 114.47.

Upcoming Events:

  • 07:15 AM GMT – (EUR) ECB President Lagarde Speaks
  • 02:00 PM GMT – (USD) Pending Home Sales m/m
  • 02:10 PM GMT – (USD) FOMC Member Bullard Speaks
  • 02:15 PM GMT – (USD) Fed Chair Powell Speaks