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Markets Update: APAC stocks lower, European equity futures flat, FX steady, crude gains
Economic Calendar
Global Markets Roundup: 19 Sep 2023
Asian stocks were mostly lower on Tuesday, following the flat performance on Wall Street on Monday ahead of a flurry of central bank meetings this week.
European equity futures were indicative of a contained open, with the Euro Stoxx 50 future flat after the cash market closed down 1.4% on Monday.
FX markets were steady, with the US dollar index (DXY) maintaining 105 status, the euro (EUR/USD) rangebound, and the US dollar against the Japanese yen (USD/JPY) bouncing off support at 147.50. Crude oil futures continued to gain, with Brent crude futures above the USD 95.00/bbl level for the first time since November.
ASX 200 pressured by real estate and financials
The ASX 200 was pressured on Tuesday, with weakness in real estate and financials leading the declines from early on. The RBA minutes from the September meeting provided very little in the way of new information.
Nikkei 225 underperforms on return from holiday closure
The Nikkei 225 underperformed on Tuesday, as recent losses in the region caught up to the index on return from the holiday closure. Sentiment was also dampened with participants second-guessing if BoJ Governor Ueda will lay the groundwork this week for a future exit.
Hang Seng and Shanghai Comp choppy but downside stemmed by US-China talks and PBoC liquidity The Hang Seng and Shanghai Composite were choppy on Tuesday, owing to pressure in tech and mixed fortunes among the property stocks. However, the downside was stemmed following further US-China talks and the PBoC's continued liquidity efforts.
FX markets mostly rangebound ahead of central bank meetings
The US dollar index (DXY) traded steady on Tuesday, kept afloat by a floor near the 105.00 level as participants lacked conviction ahead of the upcoming central bank policy announcements, including the FOMC rate decision on Wednesday.
The euro (EUR/USD) was rangebound and held on to some of the prior day's gains following recent source reports regarding future ECB discussions to address excess liquidity in the banking system.
The pound (GBP/USD) struggled for direction after the prior day's whipsawing back and forth of the 1.2400 level.
The US dollar against the Japanese yen (USD/JPY) was marginally higher after bouncing off support at the 147.50 level.
The antipodeans (AUD and NZD) were indecisive in the absence of major catalysts or fresh insights from the RBA minutes.
The People's Bank of China (PBoC) set the USD/CNY mid-point at 7.1733, slightly weaker than the previous day's fix of 7.1736.
Bond markets subdued ahead of FOMC meeting
10-year US Treasury (UST) futures traded steady on Tuesday after yesterday's intraday rebound, but with upside capped ahead of a 20-year auction stateside and with the FOMC to begin its two-day meeting later today.
Bund futures slightly extended on the recent rebound and just about climbed above the 130.00 level.
10-year Japanese government bond (JGB) futures were choppy with prices not helped by weaker demand at the enhanced liquidity auction.
Commodities mixed amid supply concerns
Crude oil futures continued to gain on Tuesday amid the ongoing supply-related themes, including expectations for a squeeze. Brent crude futures topped USD 95.00/bbl for the first time since November.
Saudi Energy Minister said the situation is not bad yet and the jury's still out regarding Chinese oil demand, which is the fundamental issue, according to Energy Intel's Bakr.
The US Energy Information Administration (EIA) said US total shale regions' oil production for October is seen lower by 41k BPD at 9.391mln BPD (prev. 27k BPD fall in Sep), which is the lowest since May.
The US President Biden's administration released a statement saying it "strongly opposes" legislation to change the procedure for approval on import and export of natural gas.
Spot gold was rangebound alongside an uneventful greenback as markets awaited central bank announcements.
Copper futures were pressured amid the mostly negative mood across Asia and indecision in China.
Looking ahead, the key events to watch include the final release of the Eurozone CPI, Canadian CPI, a speech by ECB board member Elderson, and supply from the UK and 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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