Wednesday 29th July: Asian markets mixed as investors await Fed outcome

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.15%, Shanghai Composite up 2.06%, Hang Seng up 0.21%, ASX down 0.23%
  • Commodities : Gold at $1956.50 (+0.61%), Silver at $24.48 (+0.75%), Brent Oil at $43.95 (+0.78%), WTI Oil at $41.34 (+0.73%)
  • Rates : US 10-year yield at 0.581, UK 10-year yield at 0.099, Germany 10-year yield at -0.514

News & Data:

  • (AUD) Trimmed Mean CPI q/q -0.10% vs 0.10% expected
  • (AUD) CPI q/q -1.90% vs -2.00% expected
  • (USD) CB Consumer Confidence 92.6 vs 94 expected
  • (EUR) Spanish Unemployment Rate 15.30% vs 16.60% expected
  • French Junior EU Affairs Minister Beaune Says Brexit Deal Remains Possible
  • Australia dollar steps back from highs after consumer price fall

Markets Update:

Asian stock markets are mixed on Wednesday following the negative cues overnight from Wall Street amid uncertainty about a U.S. coronavirus relief bill. Investors also turned cautious ahead of the U.S. Federal Reserve’s monetary policy decision due later in the day.

While the Fed is widely expected to leave interest rates unchanged, investors may look to the accompanying statement for clues about future plans to provide additional economic stimulus.

Japanese stocks lagged their peers in the region’s major markets, with the Nikkei 225 down 1.2% while the Topix index fell 1.3%. Mainland Chinese stocks led gains regionally, with the Shanghai composite surging 2.1% while the Shenzhen component soared 3.1%. Australia dipped 0.2%, whereas in South Korea, the Kospi closed 0.3% higher.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.526 — off an earlier high of 93.799. Oil prices were higher in the afternoon of Asian trading hours, with international benchmark Brent crude futures up 0.8%.

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