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Markets Update: APAC Stocks Slip as Rate Cut Hopes Fade; ASX 200 Tumbles on Mining Woe; European Markets Brace for Cautious Open; Cautious Sentiment Reigns Amid Tight Ranges and Geopolitical Jitters.
Economic Calendar
Global Markets Roundup: 18 Jan 2023
Asian equities closed mostly lower on Thursday as investors unwound their expectations for central bank rate cuts. This weighed on sentiment across the region, with major indices in the red. European markets are set for a subdued start, with Euro Stoxx 50 futures flat following a 1.0% decline in the cash market on Wednesday. The Dollar Index (DXY) softened slightly against its peers, with EUR/USD eyeing 1.09 and USD/JPY failing to hold above 148. Crude oil futures extended their modest gains from the previous day, supported by ongoing geopolitical risks. Meanwhile, German Bunds languished near their monthly lows amid the shift in interest rate expectations.
Australia: The ASX 200 suffered a downturn on Thursday, dragged lower by mining-related sectors. Investors honed in on BHP's disappointing quarterly iron ore output, dampening sentiment across the resource-heavy index. Japan: The Nikkei 225 oscillated between gains and losses, grappling with the aftereffects of recent currency weakness and underwhelming machinery orders data. The lack of clear direction kept the index hesitant. China: Hong Kong's Hang Seng attempted to regroup after yesterday's near-4% plummet, but the recovery efforts remained tepid. Meanwhile, the mainland's Shanghai Composite continued its descent, touching its lowest level since 2020 amidst growing concerns about weak economic data and recent rate hikes.
Foreign Exchange (FX):
The Dollar Index (DXY) stayed within a narrow band (103.16-103.39) after initial data-driven gains fizzled.
EUR/USD briefly recaptured 1.0900 on ECB's firm stance against rate cuts.
GBP/USD found support from hot UK inflation data, while AUD/USD wobbled on soft jobs data.
USD/JPY struggled above 148.00 despite strong US data and wider yield spreads.
PBoC set USD/CNY mid-point at 7.1174, weakening the Yuan slightly.
Commodities:
Crude oil prices edged higher amid escalating geopolitical tensions, but gains were capped by cautious sentiment and bearish inventory data.
US Energy Inventory data showed mixed results, with crude gaining slightly against expectations.
Qatar announced a higher term price for its Al-Shaheen crude.
IEA chief sees a "comfortable" oil market in 2024 barring major disruptions.
Gold remained subdued near USD 2,000/oz as the Dollar strengthened.
Copper prices found some relief from recent selling, but the rebound was limited.
Fixed Income:
US 10-year Treasuries clawed back some ground after Wednesday's selloff.
German Bunds hovered near lows as ECB officials reiterated their commitment to stable rates.
Japanese 10-year JGBs extended losses, dipping below 147.00 after a mixed 20-year JGB auction.
Key data releases on Thursday include US Building Permits, IJC, the Philly Fed Business Index, NZ Manufacturing PMI, Japanese CPI, ECB Minutes, the BoE Credit Conditions Survey, and comments from Fed's Bostic and ECB's Lagarde. Additionally, bond auctions in Spain, France, and the US are scheduled for the day.
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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