Friday 26th April: Asian markets lower on growth concerns

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Friday 26th April: Asian markets lower on growth concerns 1

Global Markets:

  • Asian Stock Markets : Nikkei down 0.29%, Shanghai Composite down 0.32%, Hang Seng up 0.21%, ASX up 0.03%
  • Commodities : Gold at $1281.95 (+0.18%), Silver at $14.94 (+0.43%), Brent Oil at $74.19 (-0.22%), WTI Oil at $64.92 (-0.44%)
  • Rates : US 10-year yield at 2.534, UK 10-year yield at 1.154, Germany 10-year yield at -0.011

News & Data:

  • (NZD) Trade Balance 922M vs 131M expected
  • (USD) Durable Goods Orders m/m 2.70% vs 0.70% expected
  • (USD) Core Durable Goods Orders m/m 0.40% vs 0.20% expected
  • (EUR) Spanish Unemployment Rate 14.70% vs 14.50% expected
  • Japan March Output Drops; BOJ Caution Remains
  • China’s President Xi Jinping says that the country won’t pursue Yuan depreciation that harms others

Markets Update:

Asian stock markets are mostly lower on Friday following the mixed lead overnight from Wall Street as the corporate earnings season continued. Investors remained cautious as they await the release of the closely watched U.S. first-quarter gross domestic product data later in the day.

Mainland Chinese shares declined by the afternoon, with the Shanghai composite slipping 0.3% and the Shenzhen component declining about 0.5%.  In Japan, the Nikkei 225 declined 0.3% as shares of index heavyweights Softbank Group and Fanuc declined. Over in South Korea, the Kospi declined 0.4%. Down under, the ASX traded flat.

A Reuters poll of analysts out Thursday found most believed the Fed was done with tightening altogether. Just this week central banks in Sweden and Canada have backed off plans to tighten, while the Bank of Japan tried to dispel doubts about its accommodative stance by pledging to keep rates at super-low levels for at least one more year.

European Central Bank Vice-President Luis de Guindos on Thursday opened the door to more money-printing if needed to boost inflation in the euro zone. Rate cuts look much likelier in Australia and New Zealand after recent disappointingly weak inflation reports.

Brent crude ran into profit-taking after hitting $75 per barrel on Thursday for the first time in nearly six months following the suspension of some Russian crude exports to Europe.

Upcoming Events:

  • 09:00 AM GMT – (CHF) SNB Chairman Jordan Speaks
  • 01:30 PM GMT – (USD) Advance GDP q/q
  • 01:30 PM GMT – (USD) Advance GDP Price Index q/q
  • 03:00 PM GMT – (USD) Revised UoM Consumer Sentiment

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