_edited_edited.png)
Markets Update: Asia-Pacific Stocks Fall on Hawkish Powell, US Auction Woes, China Concerns.
Economic Calendar
Global Markets Roundup: 10 Oct 2023
Asia-Pacific stocks traded lower across the board on Friday, following a downbeat lead from Wall Street. The poor 30-year US auction coupled with Powell's hawkish lean weighed on sentiment, while the APAC region itself digested earnings and China's ongoing woes. Fed Chair Powell leaned hawkish, maintaining his view that the labor market remains tight and that the central bank will need to continue to raise rates. This contrasted with the dovish repricing seen last week in the wake of the FOMC and NFP jobs report. A ransomware attack on the Industrial and Commercial Bank of China (ICBC) also disrupted the US Treasury market, stopping China's largest bank from settling Treasury trades. European equity futures pointed to a lower open, with the Euro Stoxx 50 down 0.7% after cash markets closed +1.2% the day before.
The ASX 200, which initially saw the shallowest losses among the majors. The RBA's Statement on Monetary Policy (SoMP) suggested that the Australian economy had been a bit stronger than previously thought, which supported sentiment. However, sectoral losses were led by Tech, Financials, and Energy.
Metal and Mining bucked the trend, supported by strong commodity prices. The Nikkei 225 was dragged lower by hefty post-earnings losses in Nissan, Sony, and Softbank, which were all lower by 3-6%. However, the index later clambered off worst levels and rose back above 32,500. The Hang Seng and Shanghai Composite indexes conformed to the negative tone, with Hong Kong underperforming the region. Tech and Financials were among the biggest losers in Hong Kong.
FX The US Dollar Index (DXY) sat within a tight 105.84-95 range after printing a post-Powell peak of 105.97. G10 currencies were flat against the Dollar. EUR/USD and GBP/USD hovered near yesterday's lows, while USD/JPY traded flat but not far off yesterday's peak. The Antipodeans were mixed, with the Kiwi flat but the AUD subdued following the RBA SoMP. The PBoC set USD/CNY mid-point at 7.1771 vs exp. 7.2963 (prev. 7.1772).
Commodities Crude oil futures tilted modestly firmer after the contracts found some reprieve from the recent selling. Spot gold was rangebound above USD 1,950/oz, while copper futures traded lower.
Additional note:
The report that over 60 countries are backing a deal to triple renewable energy and shift away from coal is positive for the environment and could boost demand for renewable energy-related commodities in the long term.
Looking ahead:
Highlights include UK GDP Estimate, Services, Trade Balance, US UoM, Chinese M2 Money Supply, BoC SLOOS, Fed's Logan, Bostic; ECB's Lagarde, and supply from Italy
Earnings: Allianz, Richemont, GN Store Nord
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Comentarios