Thursday 22nd October: Asian markets lower on trimmed growth forecasts.

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei down 0.70%, Shanghai Composite down 0.38%, Hang Seng down 0.03%, ASX down 0.29%
  • Commodities : Gold at $1922.55 (-0.36%), Silver at $25.08 (-0.66%), Brent Oil at $41.87 (+0.34%), WTI Oil at $40.11 (+0.20%)
  • Rates : US 10-year yield at 0.811, UK 10-year yield at 0.250, Germany 10-year yield at -0.593

News & Data:

  • (CAD) Retail Sales m/m 0.40% vs 1.00% expected
  • (CAD) Core Retail Sales m/m 0.50% vs 0.90% expected
  • (CAD) CPI m/m -0.10% vs -0.10% expected
  • Germany: Consumer climate fatiguing due to fear of second lockdown
  • US: Russia, Iran obtained voter registration data, aiming to interfere in election

Markets Update:

Asian stock markets are in negative territory on Thursday following the weak cues overnight from Wall Street amid worries that U.S. lawmakers may not reach an agreement on a new stimulus bill before the U.S. presidential election on November 3. Investor sentiment was also dampened after the International Monetary Fund or IMF lowered its 2020 growth forecast for the Asia-Pacific region.

Mainland Chinese stocks were lower on the day, with the Shanghai composite down 0.4% while the Shenzhen component shed 0.5%. Hong Kong’s Hang Seng index was around the flatline, as of its final hour of trading. In Japan, the Nikkei 225 dipped 0.7% while the Topix index fell 1.1%. Australian shares gave up 0.3%, Seoul’s Kospi was off 0.9%.

In commodity markets, oil prices extended sharp losses overnight, after higher U.S. gasoline inventories pointed to deteriorating fuel demand as coronavirus cases soar. The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 92.768 after slipping from levels above 93.2 earlier this week.

Upcoming Events:

  • 09:25 AM GMT – (GBP) BOE Gov Bailey Speaks
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 02:00 PM GMT – (USD) CB Leading Index m/m