Wednesday 13th March: Asian markets lower as Brexit vote goes against May

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Wednesday 13th March: Asian markets lower as Brexit vote goes against May 1

Global Markets:

  • Asian Stock Markets : Nikkei down 1.03%, Shanghai Composite down 1.09%, Hang Seng down 0.53%, ASX down 0.22%
  • Commodities : Gold at $1304.85 (+0.52%), Silver at $15.46 (+0.32%), Brent Oil at $66.91 (+0.36%), WTI Oil at $57.20 (+0.58%)
  • Rates : US 10-year yield at 2.611, UK 10-year yield at 1.152, Germany 10-year yield at 0.054

News & Data:

  • (USD) Core CPI m/m 0.10% vs 0.20% expected
  • (USD) CPI m/m 0.20% vs 0.20% expected
  • (GBP) Manufacturing Production m/m 0.80% vs 0.20% expected
  • (GBP) GDP m/m 0.50% vs 0.20% expected
  • Japan’s Jan machinery orders weaken as trade war hits spending plans
  • K. Weighs No-Deal Brexit Vote as May Is Plunged Into Crisis

Markets Update:

Asian stock markets, led by Japan, are mostly lower on Wednesday following the mixed cues overnight from Wall Street and amid fresh uncertainties over Brexit after UK lawmakers again resoundingly rejected Prime Minister Theresa May’s deal for Britain to withdraw from the European Union. May’s Brexit deal was earlier defeated by UK lawmakers in January.

Japan’s Nikkei 225 fell 1 percent while the Topix index was down 0.9 percent. The Kospi index in South Korea declined 0.4 percent while Hong Kong’s Hang Seng index slipped 0.5 percent. Mainland Chinese shares were also lower.

The Shanghai composite was down 1.1 percent while the Shenzhen composite fell 1.9 percent. In Australia, the ASX 200 dropped 0.22 percent with most sectors lower. The energy sector fell 1.21 percent as oil stocks struggled for gains.

A soft U.S. inflation report for February burnished bonds while tarnishing the dollar. Annual consumer price inflation slowed to its lowest since September 2016 at 1.5 percent. The data merely reinforced expectations the Federal Reserve will stay patient on rates and could even sound more dovish at its policy meeting next week. Yields on U.S. 10-year notes duly declined to a 10-week low at 2.596 percent, while the dollar idled at 97.000 against a basket of currencies.

Oil prices edged up on tightening global supply after a Saudi official said the kingdom plans to cut oil exports in April, while the U.S. government reduced its forecast for domestic crude output growth.

Upcoming Events:

  • 01:30 PM GMT – (USD) Core Durable Goods Orders m/m
  • 01:30 PM GMT – (USD) PPI m/m
  • 01:30 PM GMT – (USD) Core PPI m/m
  • 01:30 PM GMT – (USD) Durable Goods Orders m/m
  • &more…

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