Global Markets:
- Asian Stock Markets : Nikkei up 2.31%, Shanghai Composite up 0.91%, Hang Seng up 1.40%, ASX up 0.83%
- Commodities : Gold at $1546.35 (-0.89%), Silver at $17.93 (-1.32%), Brent Oil at $65.59 (+0.23%), WTI Oil at $59.80 (+0.32%)
- Rates : US 10-year yield at 1.874, UK 10-year yield at 0.794, Germany 10-year yield at -0.249
News & Data:
- (CNY) CPI y/y 4.50% vs 4.70% expected
- (AUD) Trade Balance 5.80B vs 4.10B expected
- (USD) Crude Oil Inventories 1.2M vs -3.4M expected
- (USD) ADP Non-Farm Employment Change 202K vs 160K expected
- US: Ready to engage in serious negotiations with Iran
- China’s Inflation Steady in December With Oil Spike Ahead
Markets Update:
Asian stock markets are rebounding on Thursday after comments by U.S. President Donald Trump indicated the U.S. would hit Iran with new sanctions, but not respond militarily. Trump also said Iran appeared to be “standing down,” adding that it was a good thing for all parties concerned and for the world. Trump’s comments eased investors’ concerns about a wider conflict in the Middle East.
Chinese mainland markets traded higher, with the Shanghai Composite higher by 0.9% and the Shenzhen Composite higher by 1.5%. The Nikkei 225 in Japan gained 2.3%, erasing its losses from the previous session. The Topix index added 1.6%. Australia’s ASX 200 rose 0.8%, with the heavily weighted financials subindex gaining 0.7%. In South Korea, the Kospi was up 1.8%, while Hong Kong’s Hang Seng index rose 1.3%.
Oil prices tumbled nearly 5% overnight following Trump’s remarks. During Asian trading hours on Wednesday, prices had surged about 4% in response to the Iranian attack. The U.S. dollar also rose against a basket of its peers — the dollar index last traded at 97.259, climbing from around 96.818 in the previous session.
U.S. Treasuries, which had soared in the flight to safety a day ago also settled back, with yields on the benchmark 10-year U.S. Treasury note at 1.874%, after dropping as low as 1.705%. Gold gave back sharp gains made on Wednesday but remains dearer than before Soleimani’s death, in an indication that investors’ fears have not completely evaporated.
Upcoming Events:
- 09:30 AM GMT – (GBP) BOE Gov Carney Speaks
- 01:00 PM GMT – (USD) FOMC Member Clarida Speaks
- 02:30 PM GMT – (USD) FOMC Member Kashkari Speaks
- 06:01 PM GMT – (USD) 30-y Bond Auction
- 07:00 PM GMT – (CAD) BOC Gov Poloz Speaks
- &more…