Wednesday 27th October: Chinese markets drop on US China tensions

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.03%, Shanghai Composite down 0.98%, Hang Seng down 1.76%, ASX up 0.07%
  • Commodities : Gold at $1787.90 (-0.31%), Silver at $24.01 (-0.33%), Brent Oil at $84.71 (-1.10%), WTI Oil at $83.39 (-1.49%)
  • Rates : US 10-year yield at 1.605, UK 10-year yield at 1.065, Germany 10-year yield at -0.151

News & Data:

  • (AUD) Trimmed Mean CPI q/q 0.70% vs 0.50% expected
  • (AUD) CPI q/q 0.80% vs 0.80% expected
  • (USD) CB Consumer Confidence 113.8 vs 108.4 expected
  • (USD) Richmond Manufacturing Index 12 vs 4 expected

Markets Update:

Asian stocks ended broadly lower on Wednesday as inflation worries persisted and investors awaited the Bank of Japan (BOJ) and European Central Bank (ECB) policy meetings for directional cues. U.S.-China tensions also remained on investors’ radar after the U.S. licence of one of China’s biggest telecoms companies was revoked, citing national security concerns.

Australian stocks fluctuated before ending on a flat note after data showed Australian core inflation jumped to a six-year high in the third quarter. Kiwi stocks ended lower after a survey showed business confidence fell in October as a result of cost and inflation pressures. Japanese shares ended on a subdued note amid uncertainty heading into the general election. Chinese shares fell sharply amid heightened U.S.-China tensions over Taiwan.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.865 following a recent surge to levels around 94.

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