Thursday 21st January: Markets cheer as Biden gets straight to work

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.82%, Shanghai Composite up 1.07%, Hang Seng down 0.07%, ASX up 0.79%
  • Commodities : Gold at $1869.00 (+0.13%), Silver at $25.91 (+0.56%), Brent Oil at $55.75 (-0.59%), WTI Oil at $52.98 (-0.62%)
  • Rates : US 10-year yield at 1.079, UK 10-year yield at 0.288, Germany 10-year yield at -0.534

News & Data:

  • (AUD) Unemployment Rate 6.60% vs 6.70% expected
  • (AUD) Employment Change 50.0K vs 50.0K expected
  • (CAD) Overnight Rate 0.25% vs 0.25% expected
  • (CAD) CPI m/m -0.20% vs 0.10% expected
  • BoJ Gov Kuroda: CPI Is Expected To Stay Negative For Time Being
  • Japan Suga: Infection Rates Still High After Emergency Declaration

Markets Update:

Asian stock markets are mostly higher on Thursday following the record closing highs overnight on Wall Street after Joe Biden was sworn in as the 46th President of the United States. Investors are optimistic that the new Biden administration’s potential spending increase will spur growth in the world’s largest economy.

The Australian market is rising for a third straight day after U.S. stocks closed at record highs overnight and as data showed that Australia’s unemployment rate fell in December. The Shanghai composite in mainland China rose 1.1% while the Shenzhen component advanced 1.9%.

Hong Kong’s Hang Seng index lagged the broader region, slipping 0.5%, as of its final hour of trading. In Japan, the Nikkei 225 rose 0.8% while the Topix index advanced 0.6% to finish its trading day.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.30 after an earlier high of 90.452. In commodity markets, oil prices eased on an unexpected rise in U.S. crude stocks, though hopes for an economic revival kept losses in check.

Upcoming Events:

  • 01:30 AM GMT – (JPY) BOJ Press Conference
  • 07:45 AM GMT – (EUR) Monetary Policy Statement
  • 07:45 AM GMT – (EUR) Main Refinancing Rate
  • 08:30 AM GMT – (EUR) ECB Press Conference
  • 08:30 AM GMT – (USD) Philly Fed Manufacturing Index
  • 08:30 AM GMT – (USD) Unemployment Claims
  • 04:45 PM GMT – (NZD) CPI q/q