Tuesday 18th January 2022 : Markets turn lower as investors expect the Fed to send more hawkish signs

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.27%, Shanghai Composite up 0.81%, Hang Seng down 0.49%, ASX down 0.11%
  • Commodities : Gold at $1816.50 (0.00%), Silver at $23.01 (+0.40%), Brent Oil at $87.78 (+1.50%), WTI Oil at $84.83 (+1.84%)
  • Rates : US 10-year yield at 1.841, UK 10-year yield at 1.184, Germany 10-year yield at -0.019

News & Data:

  • (JPY) Revised Industrial Production m/m 7.00% vs 7.20% expected
  • (JPY) BOJ Policy Rate -0.10% vs -0.10% expected
  • (NZD) NZIER Business Confidence -28 vs -11 previous
  • (CAD) Manufacturing Sales m/m 2.60% vs 1.70% expected
  • (CAD) Foreign Securities Purchases 30.15B vs 23.50B expected

Markets Update:

Asian stock markets are trading lower  on Tuesday, following the lack of cues from Wall Street overnight due to a holiday, on a continued spike in crude oil prices and a firm trend in European markets. Traders also digested Chinese GDP data that showed a stronger than expected pace of expansion of the Chinese economy, which will bode well for the region and for a global economy recovery. The risk sentiment improved following a reduction in the key interest rate by the People’s Bank of China.

Each of the region’s major markets, apart from some Chinese indexes, gave up their earlier gains. In Japan, the benchmark Nikkei 225 fell 0.3% and the Topix index was down 0.4%. Australia’s ASX 200 fell 0.2% as the heavily weighted financials subindex faltered 0.4%.Hong Kong’s Hang Seng index lost 0.1%, but the tech-focused Hang Seng Tech index rose 0.4% despite trimming most of its earlier gains.

The dollar index, which tracks the greenback against a basket of currencies of major trading partners, was up at 95.33.

Upcoming Events:

  • Tentative – (JPY) BOJ Outlook Report
  • Tentative – (JPY) Monetary Policy Statement
  • Tentative – (JPY) BOJ Press Conference
  • 10:00 AM GMT – (EUR) ZEW Economic Sentiment
  • 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
  • 01:30 PM GMT – (USD) Empire State Manufacturing Index