Wednesday 22nd May: Trade sentiment continues to drive the markets

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Wednesday 22nd May: Trade sentiment continues to drive the markets 1

Global Markets:

  • Asian Stock Markets : Nikkei up 0.04%, Shanghai Composite down 0.74%, Hang Seng up 0.05%, ASX up 0.16%
  • Commodities : Gold at $1272.65 (-0.04%), Silver at $14.39 (-0.12%), Brent Oil at $71.64 (-0.75%), WTI Oil at $62.47 (-1.05%)
  • Rates : US 10-year yield at 2.419, UK 10-year yield at 1.074, Germany 10-year yield at -0.073

News & Data:

  • (AUD) Construction Work Done q/q -1.90% vs 0.10% expected
  • (NZD) Core Retail Sales q/q 0.70% vs 0.90% expected
  • (NZD) Retail Sales q/q 0.70% vs 0.60% expected
  • OECD warns global economy remains weak as subdued trade drags down growth
  • Louis Fed’s Bullard Discusses Successful Normalization of U.S. Monetary Policy

Markets Update:

Asian stock markets are mostly higher on Wednesday following the overnight gains on Wall Street after the U.S. temporarily eased trade restrictions on Chinese telecom giant Huawei. However, gains are modest in most markets amid lingering worries about U.S.-China trade tensions after the New York Times reported that the Trump administration is considering placing limits to Chinese video surveillance firm Hikvision’s ability to buy U.S. technology. Investors are also cautious as they look ahead to the release of minutes of the U.S. Federal Reserve’s latest monetary policy meeting later in the day.

Shares in mainland China seesawed – with Shanghai Composite lower by 0.7%, Shenzhen composite lower by 0.9%. Shares of Chinese surveillance tech company Hikvision dropped more than 4% after the New York Times reported that the U.S. administration is pondering restrictions on the company’s ability to buy American technology.

Meanwhile, Hong Kong’s Hang Seng index added 0.1%. Elsewhere in the region, the Nikkei 225 in Japan added 0.29% in afternoon trade as shares of index heavyweights Fast Retailing and Softbank Group rose.

The dollar traded at 110.460 yen after popping up to a two-week high of 110.675 against the safe-haven Japanese currency overnight as U.S. yields rose in the wake of gains by Wall Street shares.

In commodities, U.S. West Texas Intermediate (WTI) crude futures were down 0.89% at $62.57 per barrel after American Petroleum Institute data showed that U.S. crude stockpiles rose unexpectedly last week. Oil was also pressured by Saudi Arabia reiterating that it would aim to keep the market balanced and try to reduce tensions in the Middle East.

Upcoming Events:

  • 06:00 AM GMT – (USD) FOMC Member Bullard Speaks
  • 09:30 AM GMT – (GBP) CPI y/y
  • 09:30 AM GMT – (GBP) PPI Input m/m
  • 09:30 AM GMT – (GBP) Public Sector Net Borrowing
  • 01:30 PM GMT – (CAD) Core Retail Sales m/m
  • 01:30 PM GMT – (CAD) Retail Sales m/m
  • 03:00 PM GMT – (USD) FOMC Member Williams Speaks
  • 07:00 PM GMT – (USD) FOMC Meeting Minutes
  • &more…

 

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