Global Markets:
- Asian Stock Markets : Nikkei down 0.03%, Shanghai Composite down 0.97%, Hang Seng down 0.21%, ASX up 0.41%
- Commodities : Gold at $1337.05 (+0.26%), Silver at $14.83 (+0.28%), Brent Oil at $60.73 (+0.16%), WTI Oil at $51.70 (+0.04%)
- Rates : US 10-year yield at 2.109, UK 10-year yield at 0.867, Germany 10-year yield at -0.231
News & Data:
- (AUD) Trade Balance 4.87B vs 5.05B expected
- (USD) ISM Non-Manufacturing PMI 56.9 vs 55.6 expected
- (USD) ADP Non-Farm Employment Change 27K vs 185K expected
- (GBP) Services PMI 51 vs 50.6 expected
- US-Mexico talks to resume Thursday as tariff deadline nears
Markets Update:
Asian stock markets are mostly lower on Thursday despite the positive cues overnight from Wall Street amid continued optimism about a potential interest rate cut by the U.S. Federal Reserve. Nevertheless, gains are modest in positive markets as worries about trade tensions resurfaced following news that the U.S. and Mexico failed to reach a deal during their trade talks on Wednesday.
The Shanghai composite fell 1% and the Shenzhen composite was down 1.7%. The Hang Seng was lower by 0.2%. The Nikkei 225 in Japan was flat while the Topix index lost 0.3%. Australia’s ASX 200 rose 0.4% as most sectors traded up. The heavily weighted financial subindex rose 0.6% as major banking stocks gained.
In currency markets, the safe-haven yen was again in demand and nudged the dollar down 0.2% to 108.22. The dollar fared better against a basket of currencies to trade at 97.302, having bounced from a seven-week low overnight. Two-year Treasury yields struck their lowest since December 2017 in response, while futures have priced in around 68 basis points of easing by December.
In commodity markets, all the chatter of rate cuts helped lift gold to 15-week highs and the precious metal was last trading at $1,330.38 per ounce. Oil prices flatlined after diving overnight when the Energy Information Administration (EIA) reported the largest build in crude oil and oil product inventories since 1990.
Upcoming Events:
- 07:45 AM GMT – (EUR) Monetary Policy Statement
- 07:45 AM GMT – (EUR) Main Refinancing Rate
- 08:30 AM GMT – (CAD) Trade Balance
- 08:30 AM GMT – (EUR) ECB Press Conference
- 01:00 PM GMT – (USD) FOMC Member Williams Speaks
- &more…
