Global Markets:
- Asian Stock Markets : Nikkei down 1.83%, Shanghai Composite down 0.55%, Hang Seng up 0.20%, ASX down 1.23%
- Commodities : Gold at $1680.65 (+0.72%), Silver at $19.14 (+2.30%), Brent Oil at $88.12 (+1.08%), WTI Oil at $82.09 (+1.06%)
- Rates : US 10-year yield at 3.708, UK 10-year yield at 4.066, Germany 10-year yield at 2.096
News & Data:
- (USD) Unemployment Claims 193K vs 215K expected
- (USD) Final GDP q/q -0.60% vs -0.60% expected
- (CAD) GDP m/m 0.10% vs -0.10% expected
Markets Update:
Asian stock markets are trading mostly lower on Friday, following the broadly negative cues from global markets overnight, on growing fears of a recession amid persistently high inflation, rising interest rates and slowing global growth. Buying interest generated by the Bank of England’s bond market intervention quickly evaporated as traders quickly cashed in on the gains.
The Australian stock market is significantly lower on Friday, giving up some of the gains in the previous session, with the benchmark S&P/ASX 200 falling to nearly the 6,500 level, following the broadly negative cues from global markets overnight, dragged by weakness in financial and technology stocks, partially offset by gains in mining stocks. The Japanese stock market is sharply lower on Friday and slid back to three-month lows, giving up the gains in the previous session, with the benchmark Nikkei 225 falling more than 400 points to below the 26,000 mark, following the broadly negative cues from global markets overnight, dragged by weakness across most sectors, led by technology and financial stocks, amid growing fears of a recession and rising interest rates.
U.S. Treasuries stabilised somewhat after a renewed bout of selling on hawkish talks from Federal Reserve officials, with the yield on 10-year bonds up by 5 basis points to 3.8%. Oil prices eased. U.S. crude lost 0.3% to trade at $81.04 a barrel while Brent crude fell 0.7% to $87.89 per barrel.
Upcoming Events:
- 09:00 AM GMT – (EUR) CPI Flash Estimate y/y
- 09:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
- 12:30 PM GMT – (USD) Core PCE Price Index m/m
- 01:00 PM GMT – (USD) FOMC Member Brainard Speaks
- 02:00 PM GMT – (USD) Revised UoM Consumer Sentiment
