Global Markets:
- Asian Stock Markets : Nikkei up 0.89%, Shanghai Composite up 0.10%
- Commodities : Gold at $1266.25 (+0.65%), Silver at $14.78 (+0.55%), Brent Oil at $54.27 (+0.31%), WTI Oil at $45.81 (+0.48%)
- Rates : US 10-year yield at 2.788, UK 10-year yield at 1.305, Germany 10-year yield at 0.248
News & Data:
- BOJ Minutes: JGB Functioning Rises; Must Watch Risks
- Trump’s frustration with Mnuchin is said to be rising: CNN
- Trump says U.S. government shutdown to last until agreement on border wall
Markets Update:
Asian stock markets retreated again on Wednesday, extending a rout that began last week as U.S. political uncertainty exacerbated worries over slowing global economic growth.
Investors were unnerved by the U.S. federal government partial shutdown and President Donald Trump’s hostile stance toward the Federal Reserve chairman. U.S. Treasury Secretary Steven Mnuchin had also raised market concerns by convening a crisis group amid the pullback in stocks.
The Japanese market is notably higher, rebounding from sharp losses in the previous session on Christmas Day. Exporters’ shares are advancing on a weaker yen. The moves came after the share average plummeted around 5 percent on Tuesday, putting the index well into bear market territory as it was more than 20 percent off its high in October. The mainland Chinese markets, watched in relation to the trade spat between Beijing and Washington, were cautious by the end of the morning session. Both the Shanghai composite and Shenzhen composite were largely flat.
U.S. bond yields have declined amid the rout, including a steep sell-off in oil, prompted investors to move into safe-haven government debt, adding to the growing pressure on the dollar. The 10-year U.S. Treasury note yield extended its fall to touch 2.722 percent, its lowest since early April.
In commodities, U.S. crude futures were up 0.5 percent at $45.81 per barrel after tumbling 6.7 percent on Monday. U.S. crude futures plunged to the lowest level since June 2017 on Monday, as bearish stocks added to fears of an economic slowdown.
