Wednesday 27th January: Asian markets mixed on IMF forecast

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei up 0.31%, Shanghai Composite up 0.11%, Hang Seng down 0.11%, ASX down 0.65%
  • Commodities : Gold at $1845.95 (-0.27%), Silver at $25.41 (-0.52%), Brent Oil at $56.08 (+0.79%), WTI Oil at $53.04 (+0.82%)
  • Rates : US 10-year yield at 1.040, UK 10-year yield at 0.276, Germany 10-year yield at -0.530

News & Data:

  • (AUD) Trimmed Mean CPI q/q 0.40% vs 0.40% expected
  • (AUD) CPI q/q 0.90% vs 0.70% expected
  • (USD) CB Consumer Confidence 89.3 vs 88.9 expected
  • Germany: Strict lockdown eroding consumer sentiment
  • US likely to be first Western nation to crush Covid-19

Markets Update:

Asian stock markets are mostly higher on Wednesday despite the negative cues from Wall Street. Investor sentiment received a boost after the International Monetary Fund or IMF raised its outlook for global economic growth this year to 5.5 percent from 5.2 percent projected earlier.

However, gains are modest in most markets as investors remained cautious amid mixed earnings results from major companies and as they looked ahead to the U.S. Federal Reserve’s monetary policy decision due later in the day.

Mainland Chinese stocks nudged higher on the day: The Shanghai composite advanced 0.1% while the Shenzhen component gained 0.4%. Hong Kong’s Hang Seng index was trading just below the flatline. In Australia, the S&P/ASX 200 declined 0.7%. The Nikkei 225 in Japan rose 0.3% while the Topix index gained 0.7%. South Korea’s Kospi closed 0.57% lower.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.204 following an earlier low of 90.153. The International Monetary Fund raised its forecast for global growth in 2021, as widely expected, and many investors expect the global economic recovery from the pandemic-driven downturn to continue. Oil prices were supported by economic optimism, with U.S. crude futures trading up 0.6% at $52.95 per barrel.

Upcoming Events:

  • 07:00 PM GMT – (USD) FOMC Statement
  • 07:00 PM GMT – (USD) Federal Funds Rate
  • 07:30 PM GMT – (USD) FOMC Press Conference