Global Markets:
- Asian Stock Markets : Shanghai Composite up 0.44%, Hang Seng up 0.14%, ASX up 1.51%
- Commodities : Gold at $1716.45 (-0.33%), Silver at $15.35 (+1.15%), Brent Oil at $23.26 (+2.29%), WTI Oil at $14.07 (+14.02%)
- Rates : US 10-year yield at 0.597, UK 10-year yield at 0.277, Germany 10-year yield at -0.482
News & Data:
- (AUD) Trimmed Mean CPI q/q 0.50% vs 0.30% expected
- (AUD) CPI q/q 0.30% vs 0.20% expected
- (USD) CB Consumer Confidence 86.9 vs 88.3 expected
- (EUR) Spanish Unemployment Rate 14.40% vs 15.60% expected
Markets Update:
Asian stock markets are mostly higher on Wednesday despite the negative cues overnight from Wall Street, as crude oil prices rebounded more than 11 percent in Asian trades and on improved sentiment following the re-opening of businesses in several virus hot spots in Europe and some select states in the U.S. Investors now look ahead to the U.S. Federal Reserve’s monetary policy decision due later in the day.
Markets in Japan were closed on Wednesday for a holiday. Mainland Chinese stocks were mixed on the day, with the Shanghai composite up 0.4% while the Shenzhen composite dipped 0.1%. Hong Kong’s Hang Seng index advanced 0.1%, as of its final hour of trading. Over in Australia, the S&P/ASX 200 rose 1.5%.
The Federal Reserve is widely expected to leave interest rates unchanged at near-zero levels, although the central bank could provide additional guidance regarding how long it plans to keep rates at their current levels. Some economists have suggested the Fed could take steps toward yield curve control and announce targeted asset purchases as part of an effort to pin down longer-term yields.
In currencies, the dollar weakened against the Japanese yen to 106.52 on concerns the coronavirus could spread further than previously thought if businesses reopened prematurely. The euro was up 0.3% against the dollar at $1.0852 though the euro index eased after Fitch cut Italy’s credit rating to BBB-, just one notch above “junk” status. The dollar index against a basket of currencies fell 0.2%.
Upcoming Events:
- 12:30 PM GMT – (USD) Advance GDP q/q
- 12:30 PM GMT – (USD) Advance GDP Price Index q/q
- 02:00 PM GMT – (USD) Pending Home Sales m/m
- 06:00 PM GMT – (USD) FOMC Statement
- 06:00 PM GMT – (USD) Federal Funds Rate
- 06:30 PM GMT – (USD) FOMC Press Conference