Global Markets:
- Asian Stock Markets : Nikkei up 0.71%, Hang Seng down 2.99%, ASX up 0.53%
- Commodities : Gold at $1567.25 (-0.16%), Silver at $17.47 (+0.09%), Brent Oil at $59.39 (+0.99%), WTI Oil at $53.99 (+0.95%)
- Rates : US 10-year yield at 1.639, UK 10-year yield at 0.541, Germany 10-year yield at -0.355
News & Data:
- (AUD) Trimmed Mean CPI q/q 0.40% vs 0.40% expected
- (AUD) CPI q/q 0.70% vs 0.60% expected
- (USD) CB Consumer Confidence 131.6 vs 128.2 expected
- (USD) Richmond Manufacturing Index 20 vs -3 expected
- (USD) Durable Goods Orders m/m 2.40% vs 1.20% expected
- (USD) Core Durable Goods Orders m/m -0.10% vs 0.40% expected
- (EUR) Spanish Unemployment Rate 13.80% vs 14.00% expected
Markets Update:
Asian stock markets, with the exception of Hong Kong are mostly higher on Wednesday with modest gains following the overnight rebound on Wall Street. Nevertheless, investors remained cautious as they kept an eye on developments related to the coronavirus outbreak in China.
According to Chinese health officials, the coronavirus outbreak has killed 132 people and infected 5,974 people. Investors are also looking ahead to the U.S. Federal Reserve’s monetary policy decision due later in the day. The central bank is widely expected to leave interest rates unchanged.
Hong Kong’s Hang Seng Index was down 3%. Travel and consume-related stocks underperformed as citizens become less willing to spend during the new year holidays, which is usually a peak spending period. Macau casinos Galaxy Entertainment Group and Sands China Ltd. slumped more than 5%. Cathay Pacific Airways Ltd. lost around 3% while China Eastern Airlines and China Southern Airlines traded more than 5% lower.
Japan’s Nikkei 225 gained 0.7%, while South Korea’s KOSPI advanced 0.4%. Down under, Australia’s ASX 200 was up 0.5%. The country’s consumer price index advanced 0.7% from the third quarter, compared with a forecast 0.6% gain, and 1.8% from a year earlier, versus an estimated 1.7%, data from the Australian Bureau of Statistics showed on Wednesday.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.024 after seeing an earlier low of 97.943. In currency markets, the safe-haven yen was quoted at 109.14 per dollar following a 0.2% loss on Tuesday.
Oil prices rose on news that OPEC wants to extend current oil output cuts until at least June from March, with the possibility of deeper reductions on the table if oil demand in China is significantly impacted by the spread of the new coronavirus.
Upcoming Events:
- 03:30 PM GMT – (USD) Crude Oil Inventories
- 07:00 PM GMT – (USD) FOMC Statement
- 07:00 PM GMT – (USD) Federal Funds Rate
- 07:30 PM GMT – (USD) FOMC Press Conference