Friday 22nd March: Asian markets mixed on Fed sentiment.

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Friday 22nd March:  Asian markets mixed on Fed sentiment. 1

Global Markets:

  • Asian Stock Markets : Nikkei up 0.09%, Shanghai Composite up 0.06%, Hang Seng down 0.18%, ASX up 0.45%
  • Commodities : Gold at $1310.65 (+0.26%), Silver at $15.53 (+0.58%), Brent Oil at $67.92 (+0.09%), WTI Oil at $59.99 (+0.02%)
  • Rates : US 10-year yield at 2.528, UK 10-year yield at 1.067, Germany 10-year yield at 0.047

News & Data:

  • (USD) Philly Fed Manufacturing Index 13.7 vs 4.6 expected
  • (GBP) MPC Asset Purchase Facility Votes 0-0-9 vs 0-0-9 expected
  • (GBP) Asset Purchase Facility 435B vs 435B expected
  • (GBP) Official Bank Rate 0.75% vs 0.75% expected
  • (GBP) MPC Official Bank Rate Votes 0-0-9 vs 0-0-9 expected
  • (GBP) Public Sector Net Borrowing -0.7B vs -0.3B expected
  • (GBP) Retail Sales m/m 0.40% vs -0.40% expected
  • (CHF) Libor Rate -0.75% vs -0.75% expected
  • EU To Start Probe Vs China Ceramics Companies – Handelsblatt

Markets Update:

Asian stock markets are mixed on Friday despite the overnight rally on Wall Street, as investors continued to digest the potential implications of the change in the U.S. Federal Reserve’s interest rate outlook. The central bank has indicated it no longer expects to raise interest rates this year as recent U.S. data has pointed to a slowdown in economic growth. This compares to the Federal Reserve’s December projections indicating two rate hikes this year.

Mainland Chinese markets reversed early losses, with the Shanghai Composite higher by 0.1%, and the Shenzhen Composite up by 0.4%. Japan’s Nikkei 225 slipped 0.1 percent, as shares of index heavyweight Fast Retailing fell more than 1 percent. The Topix index was slightly lower.

Hong Kong’s Hang Seng index shed earlier gains to fall 0.2 percent. Down under, the ASX 200 is advancing following the rally on Wall Street. All sectors, with the exception of gold miners, are in positive territory – it last traded higher by 0.5%.

The benchmark U.S. 10-year notes yield stood at 2.530 percent after having slipped to as low as 2.500 percent on Thursday, its lowest since early January last year. The dollar also jumped back, with its index against a basket of six major currencies rising to 96.327 from Wednesday’s 1-1/2-month low of 95.735.

Oil dipped but held near 2019 highs reached the previous day, supported by a broad risk-on mood, OPEC production cuts and U.S. sanctions on key producers Iran and Venezuela.

Upcoming Events:

  • 09:15 AM GMT – (EUR) French Flash Services PMI
  • 09:15 AM GMT – (EUR) French Flash Manufacturing PMI
  • 09:30 AM GMT – (EUR) German Flash Manufacturing PMI
  • 09:30 AM GMT – (EUR) German Flash Services PMI
  • 10:00 AM GMT – (EUR) Flash Manufacturing PMI
  • 10:00 AM GMT – (EUR) Flash Services PMI
  • 01:30 PM GMT – (CAD) CPI m/m
  • 01:30 PM GMT – (CAD) Core Retail Sales m/m
  • &more…

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