Global Markets:
- Asian Stock Markets : Nikkei up 1.11%, Shanghai Composite up 0.98%, Hang Seng up 1.30%, ASX down 0.06%
- Commodities : Gold at $1220.10 (+0.02%), Silver at $14.26 (+0.24%), Brent Oil at $61.33 (+1.54%), WTI Oil at $52.38 (+1.59%)
- Rates : US 10-year yield at 3.063, UK 10-year yield at 1.379, Germany 10-year yield at 0.347
News & Data:
- (AUD) Construction Work Done q/q -2.80% vs 0.90% expected
- (USD) CB Consumer Confidence 135.7 vs 136.2 expected
- China MOF issues notice on further adjusting shopping tax exemption policy for Hainan outflying travelers
- Brexit deal: Treasury to publish economic impact analysis
- China sets yuan reference rate at 6.9500 against US dollar
Markets Update:
Asian stocks rose in morning trade on Wednesday after U.S. National Economic Council Director Larry Kudlow said the White House was having “a lot of communication with the Chinese government at all levels” and that President Donald Trump thinks there is a “good possibility” the two countries could reach an agreement. Nevertheless, investors are treading cautiously ahead of a meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the G-20 summit in Argentina later this week. Investors are also looking ahead to a speech by U.S. Federal Reserve Chairman Jerome Powell later in the day.
The mainland Chinese markets were in positive territory by the end of the morning session. The Shanghai composite was higher by 0.98 percent and the Shenzhen composite recovered from earlier losses to advance by 1.25 percent. Meanwhile, Hong Kong’s Hang Seng index gained 1.30 percent. Japan’s Nikkei 225 was around 1.1 percent higher in afternoon trade while the Topix index rose 0.58 percent. In Australia, the ASX 200 was fractionally lower.
The dollar index, which measures the greenback against a basket of major currencies, jumped overnight to 97.497 to edge toward a 1-1/2 year top of 97.661 earlier this month. Elsewhere in the foreign exchange market, the pound was among the worst performing major currencies overnight. In commodity markets, oil was cautiously higher ahead of an OPEC meeting next week at which the producer club is expected to decide on some form of supply cut to counter an emerging glut.
Upcoming Events:
- Tentative – (GBP) Bank Stress Test Results
- Tentative – (GBP) BOE Financial Stability Report
- 02:30 PM GMT – (USD) Prelim GDP q/q
- 04:30 PM GMT – (USD) Crude Oil Inventories
- 06:00 PM GMT – (USD) Fed Chair Powell Speaks
