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Markets Update: APAC Stocks Mixed as Global Yields Rise; European Equity Futures Point to Contained Open; FX Markets Quiet, USD/JPY Remains on 149 Handle; US Senate to Vote on Shutdown Bill; China Property Troubles Weigh.
Economic Calendar
Global Markets Roundup: 28 Sep 2023
APAC stocks traded mixed on Thursday, following the indecisive performance in the US amid further upside in global yields and higher oil prices. European equity futures are indicative of a contained open, with the Euro Stoxx 50 future flat after the cash market closed up 0.1% on Wednesday.
The US Senate is scheduled to vote on a motion to proceed the "shell" bill to avoid a shutdown at 16:30BST/11:30EDT on Thursday, according to Fox. The US dollar index (DXY) holds gains above the 106 mark, the euro (EUR) lingers around 1.05, and the Japanese yen (JPY) is firmer but USD/JPY remains on a 149 handle.
The ASX 200 pared initial gains as strength in the commodity-related sectors was offset by the upside in yields and weakness in consumer stocks after retail sales missed forecasts. The Nikkei 225 underperformed after it slipped beneath the 32,000 level and amid a mass ex-dividend day in Japan.
The Hang Seng and Shanghai Composite diverged, with the Hang Seng declining amid headwinds in the property sector after the suspension of shares in Evergrande and some of its units. The mainland was kept afloat after the PBoC's liquidity injections ahead of the holiday closures and following China's latest support pledges. US equity futures were rangebound amid the mixed mood in Asia and ongoing shutdown concerns.
FX The US dollar index (DXY) was rangebound, holding on to the prior day's gains with a firm footing above the 106.00 level after recently printing fresh YTD highs on the back of rising yields and Fed speak.
The euro (EUR) was lackluster and tested 1.0500 to the downside amid the recent dollar strength.
The British pound (GBP) struggled for direction and was contained in a narrow range at the 1.2100 handle.
The Japanese yen (JPY) took a breather after making further headway in 149.00 territory.
The antipodeans nursed some of this week's losses, albeit with the recovery limited by the mixed risk appetite and after weaker-than-expected Australian retail sales.
The PBoC set the USD/CNY mid-point at 7.1798, weaker than the expected 7.3239.
SNB Chair Jordan said the Bank should stick to its mandate and noted that ensuring price stability is SNB's contribution to climate.
FIXED INCOME
10-year US Treasury futures received only a slight reprieve from the recent bond selling amid the higher-for-longer expectations narrative and after comments from Fed's Harker on the potential for a further hike.
Bund futures remained subdued after recent selling, although they are off their worst levels.
10-year JGB futures were pressured with Japan's 10-year yield at a decade high, while the results of the 2-year auction were relatively inline with the previous.
COMMODITIES Crude futures continued their ascent, with WTI crude briefly rising above USD 95/bbl for the first time since August last year. Price was unfazed by the recent dollar strength. France is exploring a windfall levy to take back control of energy prices, according to the FT. Spot gold was stuck at a 6-month low after its recent slip to beneath USD 1900/oz. Copper futures were choppy and pared the initial gains amid the mixed risk appetite.
Overall Markets are trading cautiously on Thursday, with investors awaiting the release of key economic data and the outcome of the US government funding negotiations. The rising global yield environment and concerns about the Chinese property sector are weighing on risk assets, such as stocks and bonds. The dollar and crude oil remain supported.
Looking Ahead
German and Spanish CPI
EU sentiment
US GDP (final)
US IJC
ECB's economic bulletin
Banxico policy announcement
Fed's Powell, Goolsbee, Cook, and Barkin speeches
Supply from Italy and the US
Earnings from Nike
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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