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Markets Update: APAC Stocks Rise on Improved Trade Data, Bargain Buying; European Futures Point to Higher Open.
Economic Calendar
Global Markets Roundup: 05 Oct 2023
APAC stocks traded higher on Thursday as risk assets found some reprieve after yields eased back from recent peaks. European equity futures are indicative of a higher open, with the Euro Stoxx 50 future up 0.5% after the cash market closed up 0.1% on Wednesday. The US dollar index (DXY) has softened alongside the pick-up in risk sentiment, with EUR/USD and USD/JPY sitting on 1.05 and 148 handles respectively. Crude futures found some mild respite on Thursday after yesterday's more-than-5% slump, which was the worst drop in over a year.
The ASX 200 leading the gains. Yield-sensitive sectors such as real estate and tech were among the top performers. The Nikkei 225 outperformed on bargain buying, snapping a five-day losing streak. The KOSPI gained as participants shrugged off firmer-than-expected CPI data, which the BoK expects to stabilize into year-end. The Hang Seng initially lagged amid light news flow and the continued absence of mainland participants, but momentum eventually picked up amid the improved mood across regional markets and after Sunac China's offshore debt restructuring plans received court approval.
FX
The US dollar index (DXY) softened on Thursday amid improved risk appetite and after the significant miss in ADP jobs data, which precedes today's Challenger job cuts and Friday's Non-Farm Payrolls report.
The euro (EUR) benefited from the pressure in the greenback and after the recent return above 1.0500.
The British pound (GBP) remained mildly underpinned with a firmer grip on the 1.2100 handle.
The Japanese yen (JPY) slipped back beneath 149.00 amid the recent narrowing of yield differentials.
The antipodeans were bolstered alongside the constructive risk tone and following mostly improved Australian trade data.
FIXED INCOME
10-year US Treasury futures extended on the prior day's rebound, which was aided by a pullback in yields after the 30-year yield briefly climbed above 5% and following the much weaker-than-expected ADP jobs data.
Bund futures moved higher in sympathy with peers, while attention turns to German trade data.
10-year JGB futures were underpinned alongside global counterparts although pared some of the gains after the mixed results from the 30-year JGB auction.
COMMODITIES
Crude futures found some mild respite after yesterday's more-than-5% slump, which was the worst drop in over a year. However, the rebound lacks conviction with WTI languishing below USD 85/bbl.
Kuwait's Oil Minister said oil markets are heading in the right direction by balancing supply and demand. Kuwait is committed to OPEC+ production guidance and is not going to produce above quota, while it plans to have enough spare production capacity available to ensure enough supply if needed.
Spot gold edged marginal gains after the greenback retreated in tandem with yields.
Copper futures were kept afloat but with the upside somewhat limited by the absence of the red metal's largest buyer and following the weak US jobs data.
Key economic data and events to watch on Thursday include:
German trade balance
EZ, German, French, Italian, UK, US, and Canadian construction PMIs
US initial jobless claims and Challenger layoffs
Bank of England's monthly decision maker panel data
Speeches from Fed's Mester, Barkin, and Daly, and ECB's Lane and de Guindos
Supply from Spain, France, and the US
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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