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Markets Update: APAC Stocks Trade Firmer on Strong US Earnings, European Stocks Poised for Modestly Firmer Open
Economic Calendar
Global Markets Roundup: 27 Oct 2023
APAC stocks traded firmer across the board on Friday, following well-received earnings from Amazon and Intel. US equity futures also resumed trading on a firmer footing, with Amazon shares rising by over 5% in the after-market and Intel shares soaring 7.5% amid high demand for AI products. European equity futures are also indicative of a modestly firmer open.
ASX 200 Supported by Consumer Staples, Nikkei 225 Driven by Industrials, Hang Seng and Shanghai Comp Open Mixed - The ASX 200 was supported by its Consumer Staples sector on Friday, while an uptick in month-on-month producer price inflation (PPI) kept the Industrial Sector's gains capped, and Tech resided as the laggard. The Nikkei 225 saw its gains driven by its Industrial sectors, potentially following the US GDP metrics, while the Pharma sector lagged as Takeda shares slumped over 7% following their earnings. The Hang Seng and Shanghai Comp opened mixed, with the former firmer as its earnings season picked up and as the Hang Seng Tech index rose over 2%. Sentiment for the Mainland was initially muted but improved, while reports via China's Securities Journal suggested China was likely to reduce the reserve requirement ratio in Q4 to support government bond issuance.
FX
The US Dollar traded in a tight range against its major peers on Friday, with price action quiet ahead of the US PCE release.
EUR/USD and GBP/USD traded flat just above 1.0550 and under 1.2150 respectively, while EUR/GBP also traded sideways but found support at 0.8700.
USD/JPY gradually edged lower amid the hotter-than-expected Core Tokyo CPI and geopolitical headlines, although the pair remained above 150.00.
The Aussie outperformed the other antipodeans after Aussie PPI picked up month-on-month following the hotter-than-expected CPI earlier in the week.
Fixed Income
10-year US Treasury futures took a breather following the previous day's gains, while a fairly strong 7-year auction alleviated some demand concerns from the 5-year auction earlier in the week.
Bund futures held onto the prior day's gains above 128.50, with price action contained post-ECB and ahead of the US PCE.
10-year JGB futures traded on a firmer footing, with the corresponding yield also pulling back from the previous day's high of 0.89% as focus turned to the upcoming BoJ meeting.
Commodities
Crude futures edged higher following reports of renewed conflicts in the Middle East, with Brent reclaiming USD 88 per barrel.
Spot gold held a positive bias amid the softer Dollar and geopolitical headlines.
Copper futures recovered as the Dollar eased, while reports suggested Codelco had posted a 2.1% year-on-year increase in Q3 copper production and Peru is reportedly planning to cut red tape for the mining sector.
Summary
The FX and commodities markets were relatively quiet on Friday ahead of the US PCE release. The US Dollar traded in a tight range against its major peers, while crude futures edged higher following reports of renewed conflicts in the Middle East. Spot gold held a positive bias amid the softer Dollar and geopolitical headlines, while copper futures recovered as the Dollar eased.
Key highlights for the day ahead include the US PCE Price Index, Personal Income/Consumption, and earnings from Air France, Carlsberg, Eni, Equinor, Sanofi, NatWest, Exxon, Chevron, AbbVie, Aon, Charter, Colgate, and Phillips 66.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team