Wednesday 20th January: Asian markets mostly higher; Biden inauguration toda

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.38%, Shanghai Composite up 0.47%, Hang Seng up 1.00%, ASX up 0.41%
  • Commodities : Gold at $1854.50 (+0.78%), Silver at $25.58 (+1.03%), Brent Oil at $56.50 (+1.07%), WTI Oil at $53.64 (+1.25%)
  • Rates : US 10-year yield at 1.094, UK 10-year yield at 0.288, Germany 10-year yield at -0.526

News & Data:

  • (CNY) Foreign Direct Investment ytd/y 6.20% vs 6.30% previous
  • (AUD) Westpac Consumer Sentiment -4.50% vs 4.10% previous
  • (USD) TIC Long-Term Purchases 149.2B vs 45.4B expected
  • (NZD) GDT Price Index 4.80% vs 3.90% previous
  • (CAD) Wholesale Sales m/m 0.70% vs 0.90% expected
  • (CAD) Manufacturing Sales m/m -0.60% vs -0.20% expected

Markets Update:

Asian stock markets are mostly higher on Wednesday following the positive cues overnight from Wall Street.

Investors remained optimistic about additional stimulus and a faster rollout of coronavirus vaccines under incoming U.S. President Joe Biden, who will be sworn into office later today. Treasury Secretary nominee Janet Yellen has also called for additional stimulus to address the impact of the ongoing coronavirus pandemic.

Mainland Chinese stocks were higher in afternoon trade, with the Shenzhen component gaining 1% while the Shanghai composite advanced 0.2%. Hong Kong’s benchmark Hang Seng index advanced 0.5%. In Japan, the Nikkei 225 declined 0.5% while the Topix index shed 0.5%. Shares in Australia edged higher, with the S&P/ASX 200 up 0.4%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.374 following an earlier high above 90.7.

Oil prices rose on hopes that Biden’s proposed stimulus will lift economic output. Gold jumped 0.64% to $1,852.0 per ounce but bitcoin lost 1.28% to $35,458, in a consolidation after its meteoric rise until early this month.

Upcoming Events:

  • 08:30 AM GMT – (CAD) CPI m/m
  • 10:00 AM GMT – (CAD) BOC Monetary Policy Report
  • 10:00 AM GMT – (CAD) BOC Rate Statement
  • 10:00 AM GMT – (CAD) Overnight Rate
  • 11:00 AM GMT – (CAD) BOC Press Conference
  • 12:00 PM GMT – (GBP) BOE Gov Bailey Speaks
  • Tentative – (USD) President Biden Speaks
  • 07:30 PM GMT – (AUD) Employment Change
  • 07:30 PM GMT – (AUD) Unemployment Rate
  • Tentative – (JPY) BOJ Outlook Report
  • Tentative – (JPY) Monetary Policy Statement