Global Markets:
- Asian Stock Markets : Nikkei down 0.53%, Shanghai Composite up 0.81%, Hang Seng up 0.02%, ASX down 0.29%
- Commodities : Gold at $1289.05 (+0.12%), Silver at $15.14 (+0.25%), Brent Oil at $65.41 (-0.40%), WTI Oil at $56.38 (-0.37%)
- Rates : US 10-year yield at 2.722, UK 10-year yield at 1.271, Germany 10-year yield at 0.159
News & Data:
- (AUD) Cash Rate 1.50% vs 1.50% expected
- (AUD) Current Account -7.2B vs -9.3B expected
- Former chief of staff to ex-NAB boss charged over alleged $40m fraud
- China says it needs ‘stronger’ responses to support its slowing economy
- China services growth eases to four-month low in further blow to economy: Caixin PMI
Markets Update:
Asian stock markets are mostly lower on Tuesday following the negative lead overnight from Wall Street after an unexpected fall in U.S. construction spending in December. Investor sentiment was also dampened by news that China lowered its economic growth target for 2019 to a range of 6.0 percent to 6.5 percent from the 2018 target of around 6.5 percent and unveiled huge tax cuts.
Shares in mainland China advanced in the morning session as the country kicked off its annual parliamentary meeting, where Premier Li Keqiang said the country must be prepared for a tough struggle as it faces a complicated environment. By the morning session’s end, shares in mainland China were higher, with the Shenzhen component rising 0.8 percent and the Shanghai composite advancing 0.1 percent. Hong Kong’s Hang Seng index was largely flat.
Japan’s Nikkei 225 slipped 0.5 percent, as shares of index heavyweight Softbank Group declined more than 2 percent, while the Topix shed 0.5 percent. The Kospi in South Korea fell 0.5 percent, with chipmaker SK Hynix seeing its stock slip around 1 percent. In Australia, the ASX 200 slipped 0.3 percent in afternoon trade, with majority of the sectors lower.
In currency markets, the dollar held an upper hand against many of its rivals as other major central banks are seen tilting to a more dovish stance than the Federal Reserve. The 10-year U.S. Treasuries yield dropped to 2.724 percent after touching from six-week highs of 2.768 percent in the past two sessions.
Oil prices were little changed, hovering below their recently-hit three-month peaks.
Upcoming Events:
- 04:30 AM GMT – (AUD) RBA Rate Statement
- 04:30 AM GMT – (AUD) Cash Rate
- 10:30 AM GMT – (GBP) Services PMI
- 01:30 PM GMT – (USD) FOMC Member Rosengren Speaks
- 04:00 PM GMT – (USD) ISM Non-Manufacturing PMI
- 04:35 PM GMT – (GBP) BOE Gov Carney Speaks
- 11:10 PM GMT – (AUD) RBA Gov Lowe Speaks
- &more…
