Global Markets:
- Asian Stock Markets : Nikkei up 0.62%, Shanghai Composite rose 0.31%, Hang Seng down 0.03%, ASX up 0.62%
- Commodities : Gold at $1224.30 (-0.25%), Silver at $15.54 (-0.46%), Brent Oil at $71.71 (-0.57%), WTI Oil at $66.72 (-0.64%)
- Rates : US 10-year yield at 2.867, UK 10-year yield at 1.263, Germany 10-year yield at 0.345
News & Data:
- (GBP) Average Earnings Index 3m/y 2.50% vs 2.50% expected
- (GBP) Claimant Count Change 7.8K vs 2.3K expected
- (GBP) Unemployment Rate 4.20% vs 4.20% expected
- (CAD) Manufacturing Sales m/m 1.40% vs -1.10% previous
- (USD) Capacity Utilization Rate 78.00% vs 78.40% expected
- (USD) Industrial Production m/m 0.60% vs 0.50% expected
- (NZD) GDT Price Index -1.70% vs -5.00% previous
- Russia Dumped Most/All its US Treasury Holdings, Disappeared from List
- Fed's George sees 'excellent' economy, wants more rate hikes
Markets Update:
Asian stock markets, led by Japan, are higher on Wednesday following the positive cues from Wall Street after Federal Reserve Chairman Jerome Powell gave a positive outlook of the U.S. economy in his testimony before the Senate Banking Committee and reiterated that gradually raising interest rates is "the best way forward." Investors also digested upbeat corporate earnings results.
The Japanese market is extending gains to a fourth day, following the positive cues on Wall Street and on a weaker yen. The Australian market is also rising. Upbeat full-year production results from mining giant BHP Billiton also lifted stocks. Over in Seoul, gains on the Kospi were driven by the significant moves higher in tech stocks. Hong Kong's Hang Seng Index edged up as heavily weighted financials and information technology stocks edged higher.
Powell’s support for more rate hikes sent two-year Treasury yields to the highest in nearly a decade and lifted the dollar broadly. The pound suffered another bout of Brexit blues after British Prime Minister Theresa May only just cleared the latest parliamentary hurdle to her leaving plans.
Against a basket of currencies, the dollar was up at 95.010, after jumping 0.46 percent overnight. It also climbed to its highest since January against the yen at 113.07, before steadying at 112.92. The rising U.S. dollar coupled with the prospect of higher U.S. interest rates spelt trouble for gold, which crashed through major chart support to hit a one-year low. Oil prices also eased after an industry group reported an unexpected increase in U.S. crude inventories.
Upcoming Events:
- 09:30 AM GMT – (GBP) CPI y/y
- 09:30 AM GMT – (GBP) PPI Input m/m
- 09:30 AM GMT – (GBP) RPI y/y
- 10:00 AM GMT – (EUR) Final CPI y/y
- 01:30 PM GMT – (USD) Building Permits
- 01:30 PM GMT – (USD) Housing Starts
- 03:00 PM GMT – (USD) Fed Chair Powell Testifies
- 03:30 PM GMT – (USD) Crude Oil Inventories
- &more…
