Tuesday 22nd November 2022: Asian markets attempt a recovery

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.61%, Shanghai Composite up 0.13%, Hang Seng down 1.09%, ASX up 0.59%
  • Commodities : Gold at $1744.65 (+0.29%), Silver at $21.11 (+1.13%), Brent Oil at $88.19 (+0.85%), WTI Oil at $80.56 (+0.65%)
  • Rates : US 10-year yield at 3.814, UK 10-year yield at 3.241, Germany 10-year yield at 2.024

News & Data:

  • (GBP) Public Sector Net Borrowing 12.7B vs 19.1B expected
  • (JPY) BOJ Core CPI y/y 2.70% vs 2.20% expected
  • (NZD) Trade Balance -2129M vs -1715M expected
  • (AUD) CB Leading Index m/m -0.20% vs 0.20% previous
  • (EUR) German PPI m/m -4.20% vs 0.90% expected

Markets Update:

Asian stock markets are trading mostly lower on Tuesday, following the broadly negative cues from global markets overnight, as imposition of stringent restrictions and lockdowns in several cities in China, including Shanghai and Beijing, amid a surge in new COVID cases raised concerns about the outlook for the global economy. Asian markets closed mostly lower on Monday. According to reports, three people died in Beijing over the weekend and the country logged a record jump in daily cases, despite a stringent zero-COVID policy. This marked the first Covid-related deaths that China’s mainland has reported since May.

The Japanese stock market is significantly higher in choppy trading on Tuesday, extending the gains in the previous session, with the Nikkei 225 moving above the 28,100 level, despite the broadly negative cues from global markets overnight, with gains across most sectors, led by technology and financial stocks. The biggest driver for the recovery was China, with its benchmark up 0.1%. Losses on Hong Kong’s benchmark index narrowed to 1.1%. China’s central bank said late on Monday it will provide 200 billion yuan ($28 billion) in loans to six commercial banks for housing completions.

Oil prices rose on Tuesday, a day after Saudi Arabia denied a media report that it was discussing an increase in oil supply with OPEC and its allies. U.S. Treasury yields across most maturities rose on Tuesday amid expectations of further Federal Reserve interest rate hikes, as the market awaits latest Fed minutes due to be released on Wednesday to provide greater clarity.

Upcoming Events:

  • 01:30 PM GMT – (CAD) Core Retail Sales m/m
  • 01:30 PM GMT – (CAD) Retail Sales m/m
  • 03:00 PM GMT – (USD) Richmond Manufacturing Index
  • 04:00 PM GMT – (USD) FOMC Member Mester Speaks
  • 07:15 PM GMT – (USD) FOMC Member George Speaks
  • 07:45 PM GMT – (USD) FOMC Member Bullard Speaks