Global Markets:
- Asian Stock Markets : Nikkei down 0.05%, Shanghai Composite up 0.74%, Hang Seng up 2.11%, ASX up 0.19%
- Commodities : Gold at $1945.40 (-1.19%), Silver at $23.33 (-3.21%), Brent Oil at $73.22 (+0.03%), WTI Oil at $68.28 (+0.01%)
- Rates : US 10-year yield at 3.818, UK 10-year yield at 4.414, Germany 10-year yield at 2.482
News & Data:
- (CNY) Retail Sales y/y 12.70% vs 13.70% expected
- (CNY) Industrial Production y/y 3.50% vs 3.50% expected
- (AUD) Unemployment Rate 3.60% vs 3.70% expected
- (AUD) Employment Change 75.9K vs 18.6K expected
- (NZD) GDP q/q -0.10% vs -0.10% expected
- (USD) Federal Funds Rate 5.25% vs 5.25% expected
- (USD) PPI m/m -0.30% vs -0.10% expected
- (USD) Core PPI m/m 0.20% vs 0.20% expected
- (GBP) GDP m/m 0.20% vs 0.20% expected
Markets Update:
Asian stock markets are trading mostly higher on Thursday, following the mostly positive cues from global markets overnight, as traders react positively to the US Fed pausing its interest rate hikes following ten consecutive rate hikes, while also forecasting additional increases before the end of the year. Asian Markets closed mixed on Wednesday. The central bank’s latest projections suggest the Fed plans to resume raising rates later this year, forecasting a rate of 5.6 percent by the end of 2023.
The European Central Bank, meanwhile, is expected to deliver its eighth straight rate hike later in the day which will take borrowing costs to two-decade highs. The euro, which made a one-month high at $1.0865 overnight, traded at $1.0816 as investors awaited the decision.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6% to a new two-month high, while Japan’s tearaway Nikkei extended its rally to new three-decade peaks. Traders also expect the Bank of Japan to maintain its ultra-loose policy when it meets on Friday. The Australian stock market is modestly higher on Thursday, extending the gains in the previous three sessions, with the benchmark S&P/ASX 200 moving near the 7,200 level, with gains in miners and financial stocks partially offset by weakness in energy stocks amid tumbling crude oil prices.
Crude oil prices pared early gains and drifted lower Wednesday after data showed a notable increase in U.S. crude inventories last week, while a stronger greenback also weighed. Gold, which pays no income, was pressured by expectations for U.S. interest rates to linger at high levels, and fell to a two-week low of $1,934 an ounce.
Upcoming Events:
- 12:15 PM GMT – (EUR) Main Refinancing Rate
- 12:15 PM GMT – (EUR) Monetary Policy Statement
- 12:30 PM GMT – (USD) Core Retail Sales m/m
- 12:30 PM GMT – (USD) Empire State Manufacturing Index
- 12:30 PM GMT – (USD) Retail Sales m/m
- 12:30 PM GMT – (USD) Unemployment Claims
- 12:30 PM GMT – (USD) Philly Fed Manufacturing Index
- 12:45 PM GMT – (EUR) ECB Press Conference
- 01:15 PM GMT – (USD) Industrial Production m/m
