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Markets Update: Asian Markets Mostly Lower as Risk Appetite Constrained
Today's important market events:
[CHF] SNB Interest Rate Decision - 09:30 CEST
[CHF] SNB Press Conference - 10:00 CEST
[GBP] BoE Interest Rate Decision - 13:00 CEST
[USD] Initial Jobless Claims - 14:30 CEST
[USD] Existing Home Sales (May) - 16:00 CEST
[USD] Fed Chair Powell Testifies - 16:00 CEST
[USD] Crude Oil Inventories - 17:00 CEST
Global Markets Roundup: 22 June 2023
Asian markets were mostly lower on Thursday, following the tech-led declines on Wall Street and with risk appetite also constrained by key holiday closures.
The Nikkei 225 was down 0.6%, while the Hang Seng and Shanghai Composite were both down 0.7%.
The subdued mood in Asia came as investors remained cautious ahead of a number of key events, including the release of US IJC, Existing Home Sales, EU Consumer Confidence (Flash), BoE, SNB, Norges, CBRT & Banxico announcements, and speeches from Fed officials.
European equity futures were indicative of a softer open, with the Euro Stoxx 50 down 0.6%. In FX, the dollar was slightly stronger, with the DXY index hovering around 102. EUR/USD was eyed 1.10 to the upside, while cable hovered above 1.2750 pre-BoE.
The ASX 200 was pressured with weakness across all sectors, while the Nikkei 225 traded negatively but with the downside limited by recent currency weakness.
The KOSPI was positive with the index underpinned by investment-related headlines.
US equity futures were lacklustre overnight with price action contained ahead of today's various central bank updates.
In FX, the dollar languished near a floor at the 102.00 level after the prior day's losses.
EUR/USD held on to its gains after benefitting from a weaker dollar and edged closer to the 1.1000 handle.
GBP/USD was rangebound after the prior day's fluctuations.
USD/JPY was contained after failing to sustain a brief foray above 142.00 but with the pullback limited by dovish BoJ rhetoric.
AUD and NZD were lower alongside the subdued risk tone, holiday closure in China, and mixed New Zealand trade data.
Brazil Central Bank maintained the Selic rate at 13.75%, as expected, while it removed the reference to a possible resumption of the tightening cycle if the disinflationary process does not proceed as expected.
BoC Minutes stated they agreed to assess the need for future rate hikes based on data after deciding to increase rates on June 7th.
In FIXED INCOME, 10yr UST futures traded rangebound following yesterday's two-way price action and eventual flat settlement.
Bund futures remained afloat but with upside capped after their recent whipsawing.
10yr JGB futures were lacklustre with only mild support seen after the firmer results from the latest 5yr JGB auction.
In COMMODITIES, crude futures traded in a tight range alongside the subdued mood in risk assets and mixed private sector inventory data.
Russian gas flows through Ukraine could stop next year as the Ukrainian energy minister stated that a renewal of the five-year transit contract to supply Europe was unlikely.
Spot gold remained flat amid an uneventful dollar ahead of more Fed rhetoric and central bank decisions.
Copper futures lacked direction owing to the cautious risk appetite and absence of its largest purchaser, China.
Looking ahead, highlights include:
US IJC
Existing Home Sales
EU Consumer Confidence (Flash)
BoE
SNB
Norges
CBRT & Banxico announcements
Speeches from Fed's Powell, Bowman, Barkin & Waller
ECB's de Guindos & Panetta
SNB's Jordan & Norges Bank's Bache
Overall, the mood in the markets is cautious ahead of a number of key events.
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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