Wednesday 01st February 2023 : Asian markets tiptoe awaiting Fed statements

Global Markets:

  • Asian Stock Markets : Nikkei up 0.07%, Shanghai Composite up 0.90%, Hang Seng up 1.05%, ASX up 0.33%
  • Commodities : Gold at $1940.75 (-0.23%), Silver at $23.57 (-1.13%), Brent Oil at $85.98 (+0.61%), WTI Oil at $79.54 (+0.85%)
  • Rates : US 10-year yield at 3.468, UK 10-year yield at 3.308, Germany 10-year yield at 2.246

News & Data:

  • (NZD) Unemployment Rate 3.40% vs 3.30% expected
  • (NZD) Employment Change q/q 0.20% vs 0.30% expected
  • (USD) CB Consumer Confidence 107.1 vs 109.1 expected
  • (USD) Chicago PMI 44.3 vs 45.1 expected
  • (CAD) GDP m/m 0.10% vs 0.10% expected

Markets Update:

 Asian stocks advanced on Wednesday even as a cautious undertone prevailed ahead of the U.S FOMC meeting outcome later in the day. The Federal Reserve is likely to raise interest rates by another 25 basis points and signal that a pause in rate hikes is on the horizon. Overnight data showing a slower-than-expected increase in U.S. labor costs helped spur expectations that inflation will ease further in the coming months and eventually pave the way for the Fed to cut rates by year-end.

Japanese shares surrendered early gains to end on a flat note as a survey showed factory activity in the country shrank for a third month in January. Australian markets eked out modest gains, with mining and financial stocks leading the surge. New Zealand shares climbed as weak unemployment figures raised hopes the Reserve Bank can moderate its interest-rate hikes.

The dollar dropped for a fourth straight month in January, and lost 1.5% on the euro and 0.8% on the yen.

Upcoming Events:

  • 09:00 AM GMT – (EUR) German ifo Business Climate
  • 03:00 PM GMT – (CAD) BOC Monetary Policy Report
  • 03:00 PM GMT – (CAD) BOC Rate Statement
  • 03:00 PM GMT – (CAD) Overnight Rate
  • 04:00 PM GMT – (CAD) BOC Press Conference


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