Wednesday 25th April: Asian markets lower on costs expansion concerns

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.30%, Shanghai Composite down 0.50%, Hang Seng down 1.14%
  • Commodities : Gold at $1328.40 (-0.35%), Silver at $16.66 (-0.29%), WTI Oil at $73.83 (-0.04%), Brent Oil at $67.66 (-0.06%)
  • Rates : US 10-year yield at 3.000, UK 10-year yield at 1.528, Germany 10-year yield at 0.619

News & Data:

  • (USD) CB Consumer Confidence 128.7 vs 126 expected
  • (GBP) Public Sector Net Borrowing -0.3B vs 1.1B expected
  • (EUR) German Ifo Business Climate 102.1 vs 102.7 expected
  • China’s bonds emerge as the surprise sanctuary while the world’s debt market retreats
  • Kyodo reporting comments from a ruling LDP party official in Japan has suggested dissolving the lower house is one option available to the party

Markets Update:

Asian markets traded lower today, after last night’s tech sell off on the Wall Street. The 10 year Treasury, which touched the psychological threshold of 3% yesterday – for the first time since January 2014 – still hovers around the same.

Nikkei has been recouping losses, supported by a weak yen. Chinese equities have also been weaker, with Hang Seng tech companies also losing out, following US volatility.

While most companies have been posting above estimate earnings, investors seem to be spooked by the fact that their costs have also risen, thereby triggering fears of an earnings peak.

ASX and NZX closed for ANZAC Day public holiday.

The dollar continues to trade stronger on major crosses. While the weekly API inventory was higher, oil showed little change.

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