Global Markets:
- Asian Stock Markets : Nikkei up 1.83%, Shanghai Composite down 0.13%, Hang Seng up 0.39%, ASX up 0.53%
- Commodities : Gold at $1226.40 (-0.19%), Silver at $14.56 (-0.06%), Brent Oil at $72.10 (+0.04%), WTI Oil at $61.76 (+0.15%)
- Rates : US 10-year yield at 3.228, UK 10-year yield at 1.535, Germany 10-year yield at 0.452
News & Data:
- (CNY) Trade Balance 234B vs 209B expected
- (NZD) Official Cash Rate 1.75% vs 1.75% expected
- (USD) Crude Oil Inventories 5.8M vs 2.0M expected
- (CAD) Ivey PMI 61.8 vs 50.9 expected
- (NZD) Inflation Expectations q/q 2.00% vs 2.00% previous
- (JPY) Average Cash Earnings y/y 1.10% vs 1.20% expected
- Australia ForMin Payne: Australia Committed To Deepening China Relations
- Venezuela's annual inflation hit 833,997 percent in October: Congress
Markets Update:
Asian stock markets are in positive territory on Thursday amid improved risk appetite following the overnight rally on Wall Street after the U.S. midterm election results came largely in line with expectations. Democrats retook control of the House for the first time since 2010, while President Donald Trump's Republican Party tightened their hold on the Senate. Investors now look ahead to the U.S. Federal Reserve's monetary policy announcement due later today. The Fed is widely expected to leave interest rates unchanged, but investors will keep a close eye on the accompanying statement for clues about an expected rate hike in December.
The Greater China markets advanced during the morning session but retreated later on giving up most of the gains, with Hong Kong's Hang Seng index seeing gains of 0.39 percent while the Shanghai composite slightly lower at 0.13 percent and the Shenzhen composite losing 0.23 percent. Looking to other major Asian markets, Japan's Nikkei 225 jumped 1.83 percent in afternoon trade and the Topix index saw gains of 1.74 percent. South Korea's Kospi advanced by 1.35 percent. In Australia, the ASX 200 was 0.53 percent higher in the afternoon, with most sectors seeing gains as energy stocks advanced 0.62 percent.
The dollar index against a basket of six major currencies gained 0.2 percent to 96.188, pulling back from 95.678 plumbed on Wednesday, its lowest since Oct. 22. That low for the greenback was driven by a knee-jerk reaction to the U.S. midterm election results, with a divided Congress seen dulling Trump's fiscal stimulus drive. Oil prices struggled after surging U.S. crude output hit another record and domestic inventories rose more than expected.
Upcoming Events:
- 11:00 AM GMT – (EUR) EU Economic Forecasts
- 06:30 PM GMT – (CHF) Gov Board Member Maechler Speaks
- 08:00 PM GMT – (USD) FOMC Statement
- 08:00 PM GMT – (USD) Federal Funds Rate
