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Markets Update: APAC stocks mixed amid higher yields, BoJ keeps policy unchanged; Bank of Japan Holds Interest Rates Steady as Yen Traders Await Ueda; Mixed Outlook for Asian Equities Following Friday's Relief; Resolution Reached in Australian LNG Strike; UAW's Threat of Further Strikes Looms for the Day
Economic Calendar
Global Markets Roundup: 22 Sep 2023
APAC stocks gained on Friday, following the gains in US stocks. The Hang Seng index rose 1.3%, and the Shanghai Composite index climbed 0.8%.
The gains were supported by Asian stocks traded mixed on Friday, with rising yields and the lack of surprises from the BoJ weighing on sentiment. The BoJ kept monetary policy settings unchanged and made no change to forward guidance.
European equity futures are pointing to a softer open, with the Euro Stoxx 50 future down 0.3% after the cash market closed down 1.5% yesterday. The US dollar index (DXY) remains firm on a 105 handle, while the Japanese yen (JPY) lags post-BoJ, with USD/JPY around the 148 mark. Cable is sub-1.23. Australian unions have agreed to endorse recommendations made by the industrial umpire to end the dispute with Chevron.
The ASX 200 was dragged lower on Friday, with real estate and tech among the worst performers after the Australian 10-year yield touched its highest level since 2014. The flash PMI data was mixed, showing a deeper contraction in manufacturing.
The Nikkei 225 was pressured following the mostly firmer-than-expected Japanese CPI data, but pared some of the losses following the lack of hawkish surprises from the BoJ.
The US dollar index (DXY) was marginally firmer on Friday, supported by higher yields, although gains were capped after the prior day's choppy performance and mixed data releases.
The euro (EUR/USD) was lacklustre, with trade contained despite ECB speakers out in force yesterday, in which several suggested a pause next month.
The pound (GBP/USD) languished below 1.2300 after the BoE's close-call decision to keep rates unchanged.
The US dollar against the Japanese yen (USD/JPY) reclaimed the 148.00 handle in the aftermath of an unsurprising BoJ decision.
The antipodeans (AUD and NZD) traded sideways amid the tentative mood.
The PBoC set the USD/CNY mid-point at 7.1729 vs exp. 7.3009 (prev. 7.1730).
Russia introduced export duties linked to the USD/RUB exchange rate until end-2024.
Bond markets subdued, yields edge higher
10-year US Treasury (UST) futures were stuck near the prior day's lows as yields continued to edge higher, including the US 10-year yield, which rose above 4.50% for the first time since 2007.
Bund futures lacked direction after their recent whipsawing and deluge of ECB rhetoric.
10-year Japanese government bond (JGB) futures nursed some of this week's losses, with brief support seen after the lack of hawkish surprises from the BoJ.
Commodities rebound Crude futures resumed the prior day's rebound, with WTI back above USD 90/bbl. Australian unions agreed to endorse recommendations made by the industrial umpire to end the dispute with Chevron (CVX) and agreed to call off strikes at Chevron facilities. Spot gold eked out slight gains as commodities continued nursing post-Fed losses. Copper futures were kept afloat as risk appetite in the region gradually improved.
Looking ahead, the key events to watch on Friday include French, German, EU, UK, and US PMIs (Flash), Canadian Retail Sales, UK CBI Trends, and speeches by BoJ Governor Ueda, ECB Vice President de Guindos, Riksbank board member Thedeen, and Fed Governors Daly, Cook, and Kashkari.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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