Tuesday 11th February: Asian markets higher on Wall Street cues

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Global Markets:

  • Asian Stock Markets : Shanghai Composite up 0.39%, Hang Seng up 1.34%, ASX up 0.61%
  • Commodities : Gold at $1570.15 (-0.59%), Silver at $17.77 (-0.10%), Brent Oil at $53.92 (+1.22%), WTI Oil at $50.11 (+1.09%)
  • Rates : US 10-year yield at 1.549, UK 10-year yield at 0.553, Germany 10-year yield at -0.398

News & Data:

  • (CAD) Building Permits m/m 7.40% vs 3.50% expected
  • (CAD) Housing Starts 213K vs 200K expected
  • (EUR) Sentix Investor Confidence 5.2 vs 6.1 expected
  • (EUR) Italian Industrial Production m/m -2.70% vs 0.00% previous
  • (CHF) CPI m/m -0.20% vs -0.20% expected
  • China: Coronavirus could trim 1% from GDP growth: government researcher

Markets Update:

Asian stock markets are in positive territory on Tuesday, rebounding from the previous session’s losses, following the overnight gains on Wall Street and on hopes for more stimulus measures by China to offset the economic impact of the deadly coronavirus outbreak.

Investors also seemed reassured by Chinese President Xi Jinping’s pledge to win the fight against the coronavirus outbreak. The Japanese market is closed for a holiday.

Hong Kong’s Hang Seng index was among the biggest winners among major markets regionally as it surged 1.3% by the afternoon, with shares of Chinese tech giant Tencent jumping 1.7%. Shares of automobile firm Geely soared more than 6% after the company announced it was in talks to strengthen ties with Volvo.

Mainland Chinese stocks remained mixed by the afternoon, with the Shanghai composite up 0.4% and the Shenzhen component recovering from its earlier slip to gain 0.2%.The S&P/ASX 200 in Australia traded 0.6% higher as majority of the sectors saw gains.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 98.851 after seeing an earlier high of 98.877. Risk aversion initially helped lift gold to its highest for a week, only for the strength of the dollar to pull it back 0.25%.

Oil prices bounced a little after weeks of selling, as traders waited to see how demand in China might fare and whether OPEC could agree to trim supplies.

Upcoming Events:

  • 09:30 AM GMT – (GBP) Prelim GDP q/q
  • 09:30 AM GMT – (GBP) GDP m/m
  • 09:30 AM GMT – (GBP) Manufacturing Production m/m
  • 02:00 PM GMT – (EUR) ECB President Lagarde Speaks
  • 03:00 PM GMT – (USD) Fed Chair Powell Testifies
  • 03:35 PM GMT – (GBP) BOE Gov Carney Speaks
  • 05:00 PM GMT – (GBP) MPC Member Haskel Speaks
  • 07:15 PM GMT – (USD) FOMC Member Kashkari Speaks