_edited_edited.png)
Markets Update: Asia Market Update: Much quieter day in Asia but most equity markets still down; JP CPI in-line with ests; PBOC injects and intervenes; More company debt problems in China;
Economic Calendar
Global Markets Roundup: 18 Aug 2023
Asian stocks traded mostly lower on Friday, after the early reprieve from the recent global rout petered out.
The Nikkei 225 fell 1.1%, the Hang Seng Index lost 0.8%, and the Shanghai Composite Index declined 0.6%.
European equity futures were indicative of a slightly lower open, with the Euro Stoxx 50 down 0.1% after the cash market closed down by 1.3% yesterday.
The dollar was a touch softer but still firmly on a 103 handle, with the euro remaining below 1.09. The yen led the majors, as USD/JPY pulled back from 146. 10-year Treasury futures extended on the rebound from yesterday's trough, as yields slightly eased back.
The dollar weakened slightly alongside softer yields, as market participants looked ahead to next week's Jackson Hole Symposium for the next major risk event.
The euro rebounded off the prior day's lows, but the 1.0900 level continued to elude the single currency.
The British pound was indecisive, with price action confined to a tight range around the 1.2750 level. The Japanese yen continued its pullback from the 146.00 handle, as yield differentials slightly narrowed. The Australian dollar and New Zealand dollar initially firmed amid the initial relief seen across risk assets and after the People's Bank of China (PBoC) set the strongest reference rate setting in comparison to expectations on record.
However, the activity currencies then gave back their gains as stocks failed to sustain the early optimism. The PBoC set the USD/CNY mid-point at 7.2006, stronger than the market's expectation of 7.3065 and the previous day's fix of 7.2076.
Fixed Income
10-year Treasury futures extended their rebound from yesterday's trough, as yields slightly eased back. There were few catalysts to drive markets on Friday, with investors looking ahead to next week's Jackson Hole Symposium.
Bund futures edged higher and reclaimed the 131.00 level, ahead of EU inflation final readings for July.
10-year JGB futures followed suit to rebound across global peers, after the in-line Japanese CPI data.
Commodities
Crude futures saw early upside as stocks initially found some mild reprieve, but then gave back some of the gains as the improvement in sentiment wore thin.
Iran set September Iranian light crude price to Asia at Oman/Dubai + USD 3.45/bbl, according to a Reuters source.
Australian union said protected industrial action ballots opened at Chevron's Wheatstone downstream and Gorgon facilities in Australia and the protected industrial action ballot will open on Monday at the Wheatstone platform.
Spot gold kept afloat amid a weaker dollar but remained south of the USD 1,900/oz level.
Copper futures traded rangebound as the risk appetite in Asia proved to be flimsy.
Looking ahead, key economic data releases include UK Retail Sales and EZ CPI (Final), Trilateral Summit hosting Japanese, South Korean, and US leaders, and ECB's Lane.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Comments