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Markets Update: APAC Stocks Mixed as US Tech Rally Lifts Sentiment - CN Yuan intervention amid record Yuan fix; Asian equities reverse declines; Attention on rising bond yields.
Economic Calendar
Global Markets Roundup: 22 Aug 2023
Asian stocks were mixed on Tuesday, following a similar performance stateside where tech stocks rallied.
The Nikkei 225 rose 0.6%, while the Hang Seng Index was flat. The Shanghai Composite Index fell 0.2%.
The gains in US stocks were driven by a rally in technology stocks, which rose on hopes that the Federal Reserve will not raise interest rates too aggressively in the coming months.
The WSJ's Timiraos tweeted that he believes Fed Chair Powell is unlikely to speak about higher neutral rates at the Jackson Hole Symposium.
European equity futures were indicative of a higher open, with the Eurostoxx 50 future up 0.5%. The dollar was slightly softer, while the euro was back above 1.09. The yen was little changed against the dollar.
The Australian stock market (ASX 200) was rangebound amid a slew of earnings releases, including a drop in profits for mining giant BHP.
The Japanese stock market (Nikkei 225) was underpinned by gains in tech names, with SoftBank among the notable performers after its Arm unit filed for a US IPO.
The Hong Kong stock market (Hang Seng) and the Chinese stock market (Shanghai Composite) were indecisive, as participants digested the latest support efforts from Premier Li and the State Council, as well as the PBoC's net liquidity drain.
US equity futures were uneventful, with the Emini S&P taking a breather after yesterday's fluctuations and the Emini Nasdaq 100 holding on to most of the gains from its recent outperformance.
European equity futures are indicative of a higher open, with the Eurostoxx 50 future up 0.5%.
FX Space
The dollar slightly softened but managed to stay on a 103 handle in rangebound trade amid a lack of fresh catalysts.
The euro edged mild gains which helped the single currency reclaim the 1.0900 status.
The pound extended on yesterday's peak as it continued to scale the 1.2700 handle.
The Japanese yen marginally pulled back after recent advances and battled to remain above 146.00.
The Australian dollar and New Zealand dollar were rangebound amid the mixed risk tone and lack of any relevant data releases.
Fixed Income
10-year UST futures briefly dipped beneath the 109.00 level as the US 10-year yield touched its highest since 2007.
Bund futures attempted to nurse some of their recent losses although the rebound lacked any meaningful strength amid the rising global yield environment.
10-year JGB futures were subdued with prices not helped by weaker demand at the enhanced liquidity auction.
Commodities
Crude futures languished at yesterday's lows but with the downside stemmed by a floor in WTI around USD 80/bbl.
Woodside Energy (WDS AT) CEO said they continue to have constructive bargaining talks with unions regarding LNG facilities in Australia and noted there is a wide range of possible strike actions that might be taken at LNG facilities.
Spot gold remained afloat amid the softer dollar and continues to eye the key USD 1900/oz level.
Copper futures were indecisive in rangebound trade amid the mixed risk appetite in Asia.
Looking ahead, key economic data releases include the Richmond Fed Index, Fed Discount Rate Minutes, and speeches from Fed's Barkin, Bowman & Goolsbee.
Earnings from Lowe's Companies are also due to be released.
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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