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Tuesday 19th September 2023: Asia-Pacific Declines Amid Inflation Concerns and U.S. Rate Decision Anticipation


Global Markets:

  •  Asian Stock Markets : Nikkei down 0.80, Shanghai Composite down 0.08%, Hang Seng down 0.01%, ASX down 0.47%
  • Commodities : Gold at $1951.45 (-0.07%), Silver at $23.42 (-0.35%), Brent Oil at $94.86 (0.47%), WTI Oil at $91.15 (0.65%)
  • Rates : US 10-year yield at 4.321, UK 10-year yield at 4.445, Germany 10-year yield at 2.705

News & Data:

  • (CAD) Housing Starts 253K vs 257K expected
  • (CAD) IPPI m/m 1.3% vs 0.5% expected
  • (CAD) RMPI m/m  3.0% vs 3.8% expected

Markets Update:

Across the Asia-Pacific region, stock markets experienced widespread declines, driven by the scrutiny of minutes from the Reserve Bank of Australia’s policy meeting on September 5th. During this meeting, the central bank expressed concerns about inflation levels in the country, deeming them “too high.” They also hinted at the possibility of further tightening of monetary policy if inflation proved more persistent than anticipated.

In Australia, the S&P/ASX 200 index recorded a 0.47% drop, while South Korea’s Kospi and Kosdaq both saw declines of 0.74% and 0.98%, respectively. Japan’s Nikkei 225 index slumped by 0.80% following a public holiday, while the Topix index experienced a more modest decrease of 0.26%. Hong Kong’s Hang Seng index dipped by 0.01%, and the CSI 300 index in China lost 0.31%.

Meanwhile, in the United States, the three major stock indexes showed little change as traders eagerly awaited the U.S. Federal Reserve’s upcoming rate decision, scheduled for Thursday morning in Asia. Market sentiment suggested a 99% probability that the central bank would maintain its current interest rate, as indicated by the CME Group’s FedWatch tool.

In the U.S., the S&P 500 index saw a marginal increase of 0.07%, with the Nasdaq Composite index managing a slight gain of 0.01%. The Dow Jones Industrial Average, composed of 30 prominent stocks, edged up by 0.02%.

Upcoming Events: 

  • 12:30 PM GMT – CAD CPI m/m
  • 12:30 PM GMT – CAD Median CPI y/y
  • 12:30 PM GMT – CAD Trimmed CPI y/y
  • 12:30 PM GMT – CAD Common CPI y/y
  • 12:30 PM GMT – CAD Core CPI m/m
  • 12:30 PM GMT – USD Building Permits
  • 12:30 PM GMT – USD Housing Starts

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