Wednesday 13th January: Asian markets mixed – Pence rejects proposal to remove Trump from office

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Global Markets:

  • Asian Stock Markets : Nikkei up 1.04%, Shanghai Composite down 0.27%, Hang Seng up 0.02%, ASX up 0.11%
  • Commodities : Gold at $1857.40 (+0.72%), Silver at $25.59 (+0.59%), Brent Oil at $57.04 (+0.81%), WTI Oil at $53.59 (+0.71%)
  • Rates : US 10-year yield at 1.117, UK 10-year yield at 0.315, Germany 10-year yield at -0.497

News & Data:

  • (EUR) German WPI m/m 0.60% vs 0.10% expected
  • (JPY) Prelim Machine Tool Orders y/y 8.70% vs 8.60% previous
  • (NZD) ANZ Commodity Prices m/m 1.80% vs 0.90% previous
  • (JPY) M2 Money Stock y/y 9.20% vs 9.20% expected
  • (USD) 10-y Bond Auction 1.16|2.5 vs 0.95|2.3 previous
  • (USD) IBD/TIPP Economic Optimism 50.1 vs 50.1 expected
  • (USD) JOLTS Job Openings 6.53M vs 6.42M expected
  • (CNY) New Loans 1260B vs 1250B expected
  • (CNY) M2 Money Supply y/y 10.10% vs 10.70% expected
  • (USD) NFIB Small Business Index 95.9 vs 100.1 expected

Markets Update:

Asian stock markets are mostly higher on Wednesday tracking the modest gains overnight on Wall Street amid optimism about additional U.S. fiscal stimulus.

Nevertheless, investors remained cautious as they monitored the political developments in Washington after U.S. Vice President Mike Pence said he will not remove President Donald Trump from office. House Speaker Nancy Pelosi said the Democratic-held chamber will vote later today to impeach Trump.

Mainland Chinese stocks were lower on the day, with the Shanghai composite down 0.3% while the Shenzhen component shed 0.6%. Hong Kong’s Hang Seng index was little changed, as of its final hour of trading. Hong Kong’s Hang Seng index was little changed, as of its final hour of trading. In Japan, the Nikkei 225 advanced 1.0% while the Topix index rose 0.4%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 89.90 following an earlier high of 90.037. The yield curve, which had reached the steepest since May 2017 on expectations for big fiscal stimulus under a new Democratic administration, narrowed slightly to 97.5 basis points.

Upcoming Events:

  • 09:00 AM GMT – (EUR) ECB President Lagarde Speaks
  • 01:30 PM GMT – (USD) CPI m/m
  • 01:30 PM GMT – (USD) Core CPI m/m