Thursday 28th October: Markets lower as BOJ holds steady

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.96%, Shanghai Composite down 1.23%, Hang Seng down 0.53%, ASX down 0.25%
  • Commodities : Gold at $1803.20 (+0.24%), Silver at $24.16 (-0.14%), Brent Oil at $83.38 (-0.58%), WTI Oil at $82.28 (-0.46%)
  • Rates : US 10-year yield at 1.540, UK 10-year yield at 0.975, Germany 10-year yield at -0.170

News & Data:

  • (USD) Crude Oil Inventories 4.3M vs 2.0M expected
  • (CAD) Overnight Rate 0.25% vs 0.25% expected
  • (USD) Durable Goods Orders m/m -0.40% vs -1.10% expected
  • (USD) Core Durable Goods Orders m/m 0.40% vs 0.40% expected

Markets Update:

Asian stock markets are trading lower on Thursday, following the mostly negative cues overnight from Wall Street, on sinking crude oil prices and U.S.-China tensions over Taiwan. Traders await the upcoming monetary policy announcements from the Bank of Japan and the European Central Bank for directional cues as inflation worries persisted.

The Japanese stock market is significantly lower on Thursday, following the mostly negative cues overnight from Wall Street, as traders remain cautious ahead of the general elections this weekend. The Bank of Japan kept interest rate targets unchanged on Thursday and the central bank cut its real GDP growth outlook and consumer inflation forecasts for fiscal 2021. Mainland Chinese stocks also closed lower, with the Shanghai composite slipping 1.2% and the Shenzhen component dipped 1.0%. Hong Kong’s Hang Seng index shed 0.3%. Aussie stocks are lower, with mining and energy stocks dragging the market amid slumping commodity prices.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.773 — still off levels around 94 seen recently. Ten-year and 30-year U.S. Treasuries sustained their respective rallies. However, sovereign-yield curves have continued to flatten this week, increasing growth concerns added to signs of growth concerns as inflationary pressures push central banks toward asst tapering. In cryptocurrencies, bitcoin moved even further from the peak of almost $67,000 reached during the previous week, remaining below the $60,000 mark.

Upcoming Events:

  • 11:45 AM GMT – (EUR) Monetary Policy Statement
  • 11:45 AM GMT – (EUR) Main Refinancing Rate
  • 12:30 PM GMT – (EUR) ECB Press Conference
  • 12:30 PM GMT – (USD) Advance GDP q/q
  • 12:30 PM GMT – (USD) Advance GDP Price Index q/q
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 02:00 PM GMT – (USD) Pending Home Sales m/m