Wednesday 23rd September: Markets mixed on mixed sentiment

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.06%, Shanghai Composite up 0.17%, Hang Seng up 0.06%, ASX up 2.42%
  • Commodities : Gold at $1879.20 (-1.49%), Silver at $23.41 (-4.53%), Brent Oil at $41.75 (+0.07%), WTI Oil at $39.72 (-0.20%)
  • Rates : US 10-year yield at 0.661, UK 10-year yield at 0.182, Germany 10-year yield at -0.517

News & Data:

  • (EUR) Flash Services PMI 47.6 vs 51 expected
  • (EUR) Flash Manufacturing PMI 53.7 vs 51.5 expected
  • (EUR) German Flash Services PMI 49.1 vs 53 expected
  • (EUR) German Flash Manufacturing PMI 56.6 vs 52 expected
  • (EUR) French Flash Manufacturing PMI 50.9 vs 50.6 expected
  • (EUR) French Flash Services PMI 47.5 vs 52.2 expected
  • (NZD) Official Cash Rate 0.25% vs 0.25% expected

Markets Update:

Asian stock markets are mostly lower on Wednesday despite the tech-led rebound overnight on Wall Street as worries about the global economic recovery, the rising number of coronavirus cases in Europe and the U.S. as well as U.S.-China tensions weighed on the markets.

Mainland Chinese stocks were also higher, with the Shanghai composite 0.2% above the flatline while the Shenzhen component added 0.4%. Hong Kong’s Hang Seng index was little changed. Stocks in Japan were also seesawed in their first trading day of the week following holidays on Monday and Tuesday. The Nikkei 225 slipped 0.1% while the Topix index dipped 0.2%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 94.187 following its rise earlier this week from levels below 93.5.

Oil prices continued to retreat from last week’s gains, slipping in Asia after an industry group reported a surprise rise in U.S. crude inventories, adding to worries about demand. U.S. bonds were steady, with the yield on benchmark 10-year U.S. debt up less than one basis point at 0.6724%.

Upcoming Events:

  • 08:30 AM GMT – (GBP) Flash Manufacturing PMI
  • 08:30 AM GMT – (GBP) Flash Services PMI
  • 01:45 PM GMT – (USD) Flash Manufacturing PMI
  • 01:45 PM GMT – (USD) Flash Services PMI
  • 02:00 PM GMT – (USD) Fed Chair Powell Testifies
  • 02:30 PM GMT – (USD) Crude Oil Inventories

Thursday, September 24, 2020

  • 07:30 AM GMT – (CHF) SNB Monetary Policy Assessment
  • 07:30 AM GMT – (CHF) SNB Policy Rate