Global Markets:
- Asian Stock Markets : Nikkei up 0.18%, ASX up 0.34%
- Commodities : Gold at $1317.65 (-0.12%), Silver at $15.80 (-0.21%), Brent Oil at $61.96 (-0.03%), WTI Oil at $53.67 (+0.02%)
- Rates : US 10-year yield at 2.696, UK 10-year yield at 1.230, Germany 10-year yield at 0.171
News & Data:
- (USD) ISM Non-Manufacturing PMI 56.7 vs 57.2 expected
- (GBP) Services PMI 50.1 vs 51.1 expected
- (AUD) Cash Rate 1.50% vs 1.50% expected
- BoJ’s Governor Haruhiko Kuroda: Japan’s economy has improved significantly since 2013
- Trump Says Trade Deal With China Must Include Structural Change
- RBA’s Lowe Sees Interest-Rate Outlook ‘More Evenly Balanced’
Markets Update:
Asian stock markets are higher on Wednesday following the positive cues overnight from Wall Street. However, trading volume remained thin as several markets in the region remain closed for the Lunar New Year holidays. Investors also turned cautious as they digested details of U.S. President Donald Trump’s second State of the Union address.
In Japan, the Nikkei 225 gained 0.18 percent while the Topix index slipped 0.05 percent. Australian shares retraced early losses as the country’s benchmark ASX 200 rose 0.34 percent. Still, the so-called Big Four banks in Australia stumbled following gains in the previous session.
In his State of the Union address, Trump claimed the only things that can stop a strong U.S. economy “are foolish wars, politics or ridiculous partisan investigations. ” He faces a slew of investigations from the new House Democratic majority and warned the party against coming probes into his policies and personal finances. Trump also announced he will meet North Korean leader Kim Jong Un in Vietnam at the end of February as part of his administration’s efforts to roll back the country’s nuclear program.
The dollar held up well thanks in part to a retreat in sterling, which hit two-week lows at $1.2923 in early trade after poor survey data and uncertainty about Brexit talks pushed it below a key market level. Against a basket of currencies, the dollar was firm at 96.104 and well above last week’s low of 95.162. It fell 0.1 percent on the yen to 109.84.
In commodity markets, the Wall Street Journal reported Saudi Arabia and its Persian Gulf allies were proposing a formal partnership with a 10-nation group led by Russia to try to manage the global oil market, an alliance that could transform the cartel.
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