Thursday 24th November 2022: Asian markets trade higher

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.95%, Shanghai Composite down 0.25%, Hang Seng up 0.76%, ASX up 0.14%
  • Commodities : Gold at $1756.85 (+0.64%), Silver at $21.64 (+1.26%), Brent Oil at $85.06 (-0.41%), WTI Oil at $77.78 (-0.21%)
  • Rates : US 10-year yield at 3.689, UK 10-year yield at 2.983, Germany 10-year yield at 1.860

News & Data:

  • (USD) Revised UoM Consumer Sentiment 56.8 vs 55 expected
  • (USD) New Home Sales 632K vs 570K expected
  • (USD) Flash Manufacturing PMI 47.6 vs 50 expected
  • (USD) Flash Services PMI 46.1 vs 48 expected
  • (USD) Unemployment Claims 240K vs 225K expected
  • (USD) Durable Goods Orders m/m 1.00% vs 0.40% expected
  • (USD) Core Durable Goods Orders m/m 0.50% vs 0.00% expected
  • (GBP) Flash Services PMI 48.8 vs 48 expected
  • (GBP) Flash Manufacturing PMI 46.2 vs 45.7 expected
  • (EUR) German Flash Services PMI 46.4 vs 46.1 expected
  • (EUR) German Flash Manufacturing PMI 46.7 vs 44.9 expected
  • (EUR) French Flash Manufacturing PMI 49.1 vs 46.9 expected
  • (EUR) French Flash Services PMI 49.4 vs 50.6 expected

Markets Update:

Asian stock markets are trading mostly higher on Thursday, following the broadly positive cues from global markets overnight, as traders reacted positively to the minutes of the US Federal Reserve’s latest monetary policy meeting, which provided further evidence the central bank is considering slowing the pace of its interest rate hikes. Asian Markets closed mostly higher on Wednesday. The minutes said a “substantial majority” of meeting participants judged that a slowing in the pace of rate hikes would likely “soon be appropriate” amid rising recession fears. A slower pace of rate hikes would better allow the Fed to assess progress toward its goals of maximum employment and price stability, the minutes said.

The Australian stock market is modestly higher, with mining and technology stocks leading the charge. The Japanese stock market is sharply higher, with strength in technology and financial stocks lifting the market. On the other hand, Chinese stocks retreated despite new stimulus measures from the government, as the country logged a record-high jump in daily COVID infections. The new outbreak saw the reintroduction of new curbs in several major cities, including Beijing and Shanghai.

In the bond market, long-term U.S. Treasuries rallied overnight after the Fed minutes. Yields on 10-year notes dropped to a huge 79-basis-point deficit relative to two-year yields. Such a curve inversion has not been seen since the dot-com bust of 2000 and, on the face of it, is a signal that investors expect a deep economic downturn in coming months. In the oil market, prices are set to test a major support level established in September. If they breach it, oil could tumble to levels not seen since before late 2021.

Upcoming Events:

  • 09:00 AM GMT – (EUR) German ifo Business Climate
  • 09:45 PM GMT – (NZD) Retail Sales q/q