Tuesday 21 September 2021: Australian markets a ray of hope as Evergrande fears continue to spook investors

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.67%, Shanghai Composite up 0.40%, Hang Seng up 0.51%, ASX up 0.32%
  • Commodities : Gold at $1776.00 (-0.12%), Silver at $22.70 (+0.39%), Brent Oil at $75.46 (+1.48%), WTI Oil at $71.69 (+1.70%)
  • Rates : US 10-year yield at 1.329, UK 10-year yield at 0.803, Germany 10-year yield at -0.321

News & Data:

  • (JPY) BOJ Policy Rate -0.10% vs -0.10% expected
  • (AUD) MI Leading Index m/m -0.30% vs -0.10% previous
  • (NZD) GDT Price Index 1.00% vs 4.00% previous
  • (AUD) CB Leading Index m/m 0.30% vs 0.60% previous
  • (CNY) CB Leading Index m/m 0.80% vs 0.40% previous
  • (USD) Housing Starts 1.62M vs 1.55M expected
  • (USD) Current Account -190B vs -193B expected
  • (USD) Building Permits 1.73M vs 1.60M expected
  • (CAD) NHPI m/m 0.70% vs 0.80% expected
  • (GBP) CBI Industrial Order Expectations 22 vs 15 expected
  • (GBP) Public Sector Net Borrowing 19.8B vs 14.5B expected
  • (CHF) Trade Balance 5.06B vs 4.50B expected

Markets Update:

Asian stock markets are mostly lower on Wednesday, following the mixed cues overnight from Wall Street, as traders are cautious ahead of the Federal Reserve’s monetary policy announcement and about the likely impact of Chinese real estate major Evergrande’s debt woes on other economies.

The Japanese stock market is modestly lower in choppy trading on Wednesday, extending the sharp losses in the previous three sessions, as continued worries about potential collapse of China’s real estate firm Evergrande dented sentiment, even as traders remain concerned about the domestic coronavirus situation. The Australian markets traded higher, as energy stocks supported the market. Markets in Hong Kong were closed for a holiday. On Monday, the Hang Seng had plunged more than 3% before paring some losses on Tuesday.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.209 after sliding from levels above 93.3 earlier in the week. Crude oil prices moved higher Tuesday, ahead of weekly U.S. crude inventories data.

Upcoming Events:

  • Tentative – (JPY) Monetary Policy Statement
  • Tentative – (JPY) BOJ Press Conference
  • 02:30 PM GMT – (USD) Crude Oil Inventories
  • 06:00 PM GMT – (USD) FOMC Economic Projections
  • 06:00 PM GMT – (USD) FOMC Statement
  • 06:00 PM GMT – (USD) Federal Funds Rate
  • 06:30 PM GMT – (USD) FOMC Press Conference