Wednesday 21st October: Renewed Optimism on US stimulus talk

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.31%, Shanghai Composite down 0.09%, Hang Seng up 0.69%, ASX up 0.12%
  • Commodities : Gold at $1924.95 (+0.50%), Silver at $25.20 (+0.87%), Brent Oil at $42.49 (-1.55%), WTI Oil at $41.12 (-1.39%)
  • Rates : US 10-year yield at 0.821, UK 10-year yield at 0.222, Germany 10-year yield at -0.579

News & Data:

  • (GBP) PPI Output m/m -0.10% vs -0.10% expected
  • (GBP) PPI Input m/m 1.10% vs -0.90% expected
  • (GBP) RPI y/y 1.10% vs 1.20% expected
  • (GBP) Public Sector Net Borrowing 35.4B vs 32.5B expected
  • (GBP) Core CPI y/y 1.30% vs 1.30% expected
  • (GBP) CPI y/y 0.50% vs 0.40% expected
  • EU’s Michel: Brexit We Want A Deal Not At Any Cost Still United On Brexit

Markets Update:

Asian stock markets are mostly higher on Wednesday on renewed optimism about U.S. fiscal stimulus following news that the Trump administration and Democrats in the U.S. Congress have made progress in negotiations. Reports that Moderna’s coronavirus vaccine could be available for emergency use in December if it gets positive results from the interim trial in November also aided sentiment.

In Japan, the Nikkei 225 added 0.3% while the Topix index gained 0.7%. South Korea’s Kospi rose 0.5%. Mainland Chinese stocks were lower on the day, with the Shanghai composite down 0.1%, while the Shenzhen component slipped 1%. Hong Kong’s Hang Seng index, on the other hand, advanced about 0.9%.

Oil prices were lower in the afternoon of Asia trading hours, with international benchmark Brent crude futures down about 1%. The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 92.793 following its decline earlier this week from levels above 93.6.

Upcoming Events:

  • 12:10 PM GMT – (GBP) MPC Member Ramsden Speaks
  • 12:30 PM GMT – (CAD) CPI m/m
  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
  • 12:30 PM GMT – (CAD) Retail Sales m/m