Global Markets:
- Asian Stock Markets : Nikkei down 2.08%, Shanghai Composite down 0.95% Hang Seng down 1.69% ASX down 1.63%
- Commodities : Gold at $4,852.94 (-0.90%) Silver at $75.700 (-2.64%), Brent Oil at $112.04 (4.35%), WTI Oil at $96.46 (1.01%)
- Rates : US 10-year yield at 4.272, UK 10-year yield at 4.7450, Germany 10-year yield at 2.9425
News & Data:
- (USD) Core PPI m/m 0.5% to 0.3% expected
- (USD) Federal Funds Rate 3. % to 3.75%% expected
- (CAD) Overnight Rate 2.25% to 2.25% expected
Markets Update:
Asia-Pacific markets declined on Thursday, following a weak session on Wall Street where the Dow Jones Industrial Average recorded a new closing low for the year. Investor sentiment remained cautious after the Federal Reserve decided to keep its benchmark interest rate unchanged at 3.5% to 3.75%. Chair Jerome Powell signaled a more cautious outlook on rate cuts, noting that inflation has not eased as much as expected.
Adding to concerns, the U.S. producer price index rose 0.7% in February, significantly higher than the 0.3% forecast by economists. Despite persistent inflation pressures, the Fed’s “dot plot” still indicates potential rate cuts in 2026 and 2027, though the exact timing remains uncertain.
Geopolitical tensions, particularly the ongoing Iran conflict, continued to drive energy prices higher. Brent crude surged 3.83% to settle at $107.38 per barrel, while U.S. West Texas Intermediate crude edged up to $96.32 per barrel.
In Asia, investors are closely watching the Bank of Japan’s policy decision, with expectations that rates will remain steady at 0.75%. South Korea’s Kospi fell 2.54%, while the Kosdaq dropped 1.69%, with major chipmakers Samsung Electronics and SK Hynix both declining over 3%.
Japan’s Nikkei 225 lost 2.58%, and the Topix slipped 2.03%. Elsewhere, Australia’s S&P/ASX 200 fell 1.56%, Hong Kong’s Hang Seng dropped 1.62%, and China’s CSI 300 declined 0.89%.
Upcoming Events:
- 12:00 PM GMT – GBP Official Bank Rate
- 12:30 PM GMT – USD Unemployment Claims
- 01:15 PM GMT – EUR Main Refinancing Rate
