Global Markets:
- Asian Stock Markets : Nikkei down 0.45%, Shanghai Composite down 0.57%, Hang Seng down 1.54%, ASX down 0.39%
- Commodities : Gold at $1735.10 (-1.91%), Silver at $15.62 (-3.16%), Brent Oil at $28.95 (-2.20%), WTI Oil at $20.00 (-0.55%)
- Rates : US 10-year yield at 0.696, UK 10-year yield at 0.314, Germany 10-year yield at -0.413
News & Data:
- (EUR) French Final CPI m/m 0.10% vs 0.00% expected
- (AUD) Westpac Consumer Sentiment -17.70% vs -3.80% previous
- (NZD) FPI m/m 0.70% vs 0.00% previous
- (USD) Import Prices m/m -2.30% vs -3.10% expected
- PBOC injects CNY 100 billion via 1-year MLF at 2.95%
Markets Update:
Asian stock markets are mixed on Wednesday as investor sentiment was dampened after the International Monetary Fund or IMF warned that the global economy could see the worst recession since the Great Depression due to the coronavirus pandemic and the containment measures adopted to slow the outbreak.
The IMF said in its latest World Economic Outlook report that the world GDP is set to contract 3 percent this year, thanks to the lockdowns imposed by countries across the world. In a January update to the WEO, the IMF had predicted 3.3 percent global growth this year.
Mainland Chinese stocks dipped on the day, with the Shanghai composite 0.6%. Hong Kong’s Hang Seng index shed 1.5%, as of its final hour of trading. In Japan, the Nikkei 225 closed 0.5% lower. The Australian slipped into negative territory after opening higher following the overnight rally on Wall Street. Markets in South Korea were closed on Wednesday as the country heads to the polls for parliamentary elections.
Yields on U.S. 10-year Treasuries have settled around 0.74%, more than 100 basis points below where they started the year. That drop in yields combined with the vast amounts of cash being created by the Federal Reserve has been a drag on the U.S. dollar in recent sessions. The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 99.050 after seeing an earlier low of 98.817.
The dollar pullback and a tide of cheap money from central banks has burnished gold prices, with the metal hitting its highest since late 2012. It was last at $1,735 an ounce. In energy markets, oil prices steadied on hopes for purchases by consumer countries for their strategic stockpiles on a scale not before seen.
Upcoming Events:
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- 12:30 PM GMT – (USD) Retail Sales m/m
- 02:00 PM GMT – (CAD) BOC Monetary Policy Report
- 02:00 PM GMT – (CAD) BOC Rate Statement
- 02:00 PM GMT – (CAD) Overnight Rate
- 02:30 PM GMT – (CAD) BOC Press Conference