Wednesday 04th August 2021: Markets follow Wall Street to the green

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.21%, Shanghai Composite up 0.85%, Hang Seng up 0.85%, ASX up 0.38%
  • Commodities : Gold at $1814.45 (+0.02%), Silver at $25.73 (+0.57%), Brent Oil at $72.58 (+0.23%), WTI Oil at $70.56 (0.00%)
  • Rates : US 10-year yield at 1.182, UK 10-year yield at 0.519, Germany 10-year yield at -0.487

News & Data:

  • (AUD) Retail Sales m/m -1.80% vs -1.80% expected
  • (NZD) Unemployment Rate 4.00% vs 4.40% expected
  • (NZD) Employment Change q/q 1.00% vs 0.70% expected
  • (EUR) Spanish Unemployment Change -197.8K vs -115.5K expected
  • (AUD) Cash Rate 0.10% vs 0.10% expected
  • Italian services rebound accelerates, with growth strongest for 14 years

Markets Update:

Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues overnight from Wall Street, as traders shrugged off concerns about the rapid spread of the delta variant of the coronavirus amid continued optimism about the economic outlook. Recent data has shown some signs of slowing economic growth, but traders may see that as further proof the Federal Reserve will not begin scaling back stimulus anytime soon.

The Japanese stock market is slightly higher on Wednesday, extending the losses of the previous session, with the benchmark Nikkei index staying just above the 27,600 level, ignoring the broadly positive cues overnight from Wall Street. Australian markets are broadly higher aided by materials and energy stocks. Traders are also getting restless amid concerns about the worsening domestic coronavirus situation in New South Wales and the extended lockdown, with 233 new cases reported on Tuesday.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 92.017 — above levels below 92 seen earlier in the week. Oil prices were mixed in the afternoon of Asia trading hours, with international benchmark Brent crude futures fractionally higher.

Upcoming Events:

  • 12:15 PM GMT – (USD) ADP Non-Farm Employment Change
  • 02:00 PM GMT – (USD) ISM Services PMI
  • 02:30 PM GMT – (USD) Crude Oil Inventories