Global Markets:
- Asian Stock Markets : Nikkei up 0.79%, Shanghai Composite down 0.80%, Hang Seng down 0.43%, ASX up 0.05%
- Commodities : Gold at $1220.50 (-0.26%), Silver at $15.48 (-0.54%), Brent Oil at $74.06 (-0.20%), WTI Oil at $68.47 (-0.42%)
- Rates : US 10-year yield at 2.977, UK 10-year yield at 1.332, Germany 10-year yield at 0.446
News & Data:
- (NZD) Unemployment Rate 4.50% vs 4.40% expected
- (NZD) Employment Change q/q 0.50% vs 0.40% expected
- (USD) CB Consumer Confidence 127.4 vs 126.5 expected
- (USD) Chicago PMI 65.5 vs 61.9 expected
- (USD) Personal Spending m/m 0.40% vs 0.40% expected
- (USD) Employment Cost Index q/q 0.60% vs 0.70% expected
- (USD) Core PCE Price Index m/m 0.10% vs 0.10% expected
- (CAD) RMPI m/m 0.50% vs 2.70% expected
- (CAD) GDP m/m 0.50% vs 0.30% expected
- (EUR) Prelim Flash GDP q/q 0.30% vs 0.40% expected
- (EUR) Core CPI Flash Estimate y/y 1.10% vs 1.00% expected
- (EUR) CPI Flash Estimate y/y 2.10% vs 2.00% expected
- (EUR) Spanish Flash GDP q/q 0.60% vs 0.70% expected
- (JPY) BOJ Press Conference vs previous
- (EUR) German Retail Sales m/m 1.20% vs 1.10% expected
- Japan Securities Clearing Corporation (JSCC): Emergency margin call triggered for JGB futures
- BOJ Prepares for QE Infinity
- CFTC sues Forex Broker JAFX for taking US based customers
- Will he or won’t he? Trump sows confusion on shutdown plans
Markets Update:
Asian stock markets are slightly higher on Wednesday following the positive cues from Wall Street amid news that the U.S. and China are trying to restart talks to avert a full-blown trade war. Tech stocks also got a boost after Apple reported upbeat third-quarter earnings results. Investors now look ahead to the U.S. Federal Reserve's monetary policy decision due later in the day. The Fed is widely expected to leave interest rates unchanged, but the accompanying statement is likely to be closely examined for any hints about future rate hikes.
The Nikkei 225 advanced more than three quarters of a percent, buoyed by extended softness in the yen. Steelmakers led gains early on, with JFE Holdings rising 10.06 percent. Exporters, including automakers, mostly tracked higher, as did bank shares.
Chinese shares slipped into negative territory as investors digested trade headlines and the release of a private survey of Chinese manufacturing activity, which met expectations. Meanwhile, Hong Kong's Hang Seng Index pared early gains to trade marginally lower, with Apple supplier Sunny Optical up 1.24 percent but steep losses seen in the real estate sector. The Australian market is edging higher following the positive cues from Wall Street.
The yield on benchmark 10-year Treasury notes was at 2.9728 percent, compared with its U.S. close of 2.964 percent on Tuesday. The two-year yield, which rises with traders’ expectations of higher Fed fund rates, touched 2.6735 percent compared with a U.S. close of 2.669 percent. The dollar was flat against the yen at 111.85, but rose 0.31 percent against the offshore yuan on news of the Trump administration’s new tariff plans. Meanwhile, oil prices fell on industry data showing an unexpected rise in U.S. crude stockpiles. The slump in crude prices comes after their largest monthly decline in two years in July.
Upcoming Events:
- 09:30 AM GMT – (GBP) Manufacturing PMI
- 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
- 03:00 PM GMT – (USD) ISM Manufacturing PMI
- 03:30 PM GMT – (USD) Crude Oil Inventories
- 07:00 PM GMT – (USD) FOMC Statement
- 07:00 PM GMT – (USD) Federal Funds Rate
- &more…
