Thursday 8th December 2022: Asian Markets trading lower ensuing mixed Wall Street cues

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.40%, Shanghai Composite down 0.07%, Hang Seng up 3.25%, ASX down 0.75%
  • Commodities : Gold at $1794.85 (-0.18%), Silver at $22.90 (-0.12%), Brent Oil at $77.48 (+0.40%), WTI Oil at $72.45 (+0.61%)
  • Rates : US 10-year yield at 3.447, UK 10-year yield at 3.096, Germany 10-year yield at 1.787

News & Data:

  • (JPY) Economy Watchers Sentiment 48.1 vs 50.7 expected
  • (AUD) Trade Balance 12.22B vs 12.10B expected
  • (GBP) RICS House Price Balance -25.00% vs -10.00% expected
  • (JPY) Final GDP q/q -0.20% vs -0.30% expected
  • (JPY) Final GDP Price Index y/y -0.30% vs -0.50% expected
  • (JPY) Current Account -0.61T vs 0.35T expected
  • (JPY) Bank Lending y/y 2.70% vs 2.20% expected
  • (USD) Consumer Credit m/m 27.1B vs 28.2B expected
  • (USD) Crude Oil Inventories -5.2M vs -3.5M expected
  • (CAD) Overnight Rate 4.25% vs 4.25% expected
  • (USD) Revised Unit Labor Costs q/q 2.40% vs 3.10% expected
  • (USD) Revised Nonfarm Productivity q/q 0.80% vs 0.60% expected
  • (EUR) Revised GDP q/q 0.30% vs 0.20% expected
  • (EUR) Final Employment Change q/q 0.30% vs 0.20% expected
  • (EUR) Italian Retail Sales m/m -0.40% vs -0.60% expected
  • (CHF) Foreign Currency Reserves 790B vs 817B previous
  • (EUR) French Trade Balance -12.2B vs -15.9B expected
  • (GBP) Halifax HPI m/m -2.30% vs -0.20% expected
  • (EUR) German Industrial Production m/m -0.10% vs -0.60% expected
  • (CHF) Unemployment Rate 2.00% vs 2.10% expected
  • (JPY) Leading Indicators 99.00% vs 98.40% expected
  • (CNY) USD-Denominated Trade Balance 69.8B vs 78.1B expected
  • (CNY) Trade Balance 494B vs 486B expected
  • (AUD) GDP q/q 0.60% vs 0.70% expected

Markets Update:

Asian stock markets are trading mostly lower on Thursday, following the mixed cues from Wall Street overnight, as traders expressed concerns about the outlook for interest rates and a global recession. Traders remain uncertain about the near-term outlook for the markets ahead of next week’s US Fed monetary policy meeting. Asian Markets closed mostly lower on Wednesday. The Fed still seems poised to slow the pace of interest rate hikes, but recent upbeat economic data has raised concerns about how much further the central bank will raise rates at future meetings. The Fed will need to push the economy into a prolonged recession in order to bring inflation down close to its 2 percent target.

The China stock market on Wednesday snapped the two-day winning streak in which it had collected more than 55 points or 1.7 percent. 

The Japanese stock market is significantly lower on Thursday, extending the losses in the previous session, with the Nikkei 225 falling below the 27,500 level, following the mixed cues from Wall Street overnight, with weakness across most sectors, led by technology and financial stocks. Traders also reacted to data showing Japan’s economy contracted slower than expected in the third quarter, while Japan’s current account unexpectedly turned to deficit in October.

The Australian stock market is significantly lower on Thursday, extending the losses in the previous two sessions, with the benchmark S&P/ASX 200 falling below the 7,200 level, following the mixed cues from Wall Street overnight, with weakness across most sectors, led by energy and mining stocks amid a dip in commodity prices. Gold mining stocks were the bright spot amid a spike in gold prices.

Crude oil prices fell sharply Wednesday, weighed down by data showing a sharp increase in gasoline inventories last week.

The U.S. dollar extended overnight losses, tracking falling U.S. Treasury yields on expectations that the Federal Reserve will step down the pace of its rate hikes to 50 bps next week.

Upcoming Events: 

  • 12:01 am GMT – (GBP) RICS House Price Balance
  • 12:30 am GMT – (AUD) RBA Bulletin
  • 12:30 am GMT – (AUD) Trade Balance
  • 05:00 am GMT – (JPY) Economy Watchers Sentiment
  • 12:00 pm GMT – (EUR) ECB President Lagarde Speaks
  • 01:30 pm GMT – (USD) Unemployment Claims
  • 02:30 pm GMT – (CHF) Gov Board Member Maechler Speaks
  • 03:30 pm GMT – (USD) Natural Gas Storage
  • 05:30 pm GMT – (CAD) Gov Council Member Kozicki Speaks
  • 09:45 pm GMT – (NZD) Manufacturing Sales q/q
  • 11:50 pm GMT – (JPY) M2 Money Stock y/y