_edited_edited.png)
Markets Update: Asia-Pacific Stocks Softer, RBA Hikes Rates, European Futures Indicate Lower Open.
Economic Calendar
Global Markets Roundup: 07 Nov 2023
Asia-Pacific stocks were softer across the board on Tuesday, following the prior day's gains and the choppy/mixed lead from Wall Street. The US Dollar Index (DXY) gradually inched higher towards the top end of a 105.25-42 APAC range, with G10 currencies softer against the Buck to varying degrees. The Reserve Bank of Australia (RBA) hiked its Cash Rate by 25 basis points as expected to 4.35% from 4.10%, but made a dovish tweak to its forward guidance. European equity futures are indicative of a softer open, with the Euro Stoxx 50 down 0.3% after cash markets closed -0.4% yesterday.
The ASX 200 is leading the declines in APAC. Financials, Energy, and Materials sectors led the downside on the ASX 200, although the index clambered off worst levels following the RBA's dovish hike. The Nikkei 225 fell back under 32,500, conforming to the losses across the region. The Hang Seng and Shanghai Comp opened lower amid the broader market mood. Muted price action was seen after the narrower-than-expected October Chinese Trade Balance, although imports saw surprise growth. China Vanke's shares firmed after state shareholders showed signs of providing liquidity support.
FX
The US Dollar Index (DXY) gradually inched higher towards the top end of a 105.25-42 APAC range on Tuesday, with G10 currencies softer against the Buck to varying degrees. EUR/USD dipped closer to 1.0700 after breaching yesterday's 1.0715 low, while GBP/USD slipped under 1.2350 after finding resistance near its 200 DMA (1.2434). USD/JPY kept its head above 150.00 with little action seen to the in-line Japanese wages data. The Antipodean currencies underperformed and were softer heading into the Chinese Trade Data and the RBA, with the Aussie hit by the dovish RBA hike and the Kiwi following suit.
Fixed Income
10-year US Treasury (UST) futures took a breather after the selling seen on Monday as the heavy supply calendar began to pare last week's rally. Bund futures traded on softer footing within a 129.46-67 range. 10-year Japanese Government Bond (JGB) futures attempted to trim some of yesterday's losses before losing steam.
Commodities
Crude oil futures were softer in tandem with the risk-averse tone and the firmer Dollar, with Brent Jan giving up the USD 85/bbl level and WTI moving back under USD 80.50/bbl. Spot gold was weighed on by the Buck, while copper futures weakened alongside the broader market mood.
Looking ahead:
Highlights include EZ, German, French, and Italian Construction PMI, US International Trade, IBD/TIPP, Manheim Index, NY Fed Q3 Household Debt & Credit Report, UK King's Speech, speeches from ECB's de Guindos; Fed's Schmid, Williams, Logan, Barr, and Waller, supply from UK
Earnings: Capgemini, CNH Industrial, Daimler Truck, Persimmon, Watches of Switzerland, UBS, eBay, Occidental Petroleum Corp, Datadog
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Comments