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Markets Update: APAC equities were mixed on Wednesday, with gains in Australia and Hong Kong offset by losses in Japan.
Today's important market events:
[USD] Building Permits - 14:00 CEST
[USD] Core Durable Goods Orders - (MoM - May) - 14:30 CEST
[USD] CB Consumer Confidence (Jun) - 16:00 CEST
[USD] New Home Sales (May) - 16:00 CEST
Global Markets Roundup: 27 June 2023
US stocks closed mostly lower on Tuesday, with the Nasdaq Composite underperforming. However, small caps were resilient, with the Russell 2000 closing in the green.
APAC stocks were mostly positive, as the risk tone improved following the predominantly negative handover from the US.
European equity futures are indicative of a marginally higher open, with the Euro Stoxx 50 +0.3% after the cash market closed up 0.2% yesterday.
The US dollar index (DXY) is a touch softer but holding above 102.50. The downside coincided with a stronger Chinese yuan (CNH) after the People's Bank of China (PBoC) set a firmer-than-expected currency fix.
The ASX 200 rose as strength in financials and cyclicals picked up the slack from the losses in tech and telecoms.
The Nikkei 225 was pressured in a continued pullback from the 33,000 level amid increasing speculation that the recent currency weakness could force the BoJ’s hand regarding yield curve control (YCC).
The Hang Seng and Shanghai Composite were firmer, with Hong Kong led by gains in tech and property after the People's Bank of China (PBoC)'s continued liquidity efforts.
Premier Li Keqiang pledged to roll out effective policy measures during his speech at the World Economic Forum (WEF) in Tianjin, and it was also reported that US Treasury Secretary Janet Yellen is planning a trip to China in July.
US equity futures were kept afloat as risk sentiment in Asia improved, but with gains limited.
European equity futures are indicative of a marginally higher open with the Euro Stoxx 50 +0.3% after the cash market closed up 0.2% yesterday.
The dollar index (DXY) marginally softened amid gains in its major counterparts, which coincided with a stronger Chinese yuan (CNH) after the PBoC set a firmer-than-expected currency fix.
However, the pressure in the dollar was limited as participants await a slew of central bank speakers at the ECB Forum in Sintra and data from the US including Richmond Fed, Consumer Confidence, Durable Goods and New Home Sales.
The euro (EUR) remained firmer after recent comments from ECB's Simkus that at least one more rate hike is required, while Econostream noted the ECB’s September meeting stands a decent chance of another rate hike based on conversations with several ECB insiders.
The pound (GBP) kept afloat with near-term support at the 1.2700 level and after the latest Reuters poll showed expectations for the Bank of England (BoE) to continue hiking rates at the next two meetings.
The US dollar (USD) against the Japanese yen (JPY) was steady after the prior weeks’ upward momentum was stalled by familiar currency jawboning.
The Australian dollar (AUD) and New Zealand dollar (NZD) gained with AUD/USD boosted in tandem with the CNH strength post-fix and as China's state banks stepped in to support the yuan.
The PBoC set the USD/CNY mid-point at 7.2098, stronger than the market's expectation of 7.2194 (previous 7.2056).
China state banks were spotted selling dollars in offshore currency markets to prop up the yuan, according to sources cited by Reuters.
In fixed income, 10-year US Treasury futures were lacklustre following the prior day’s choppy price action whereby the weak German IFO-induced rally was reversed due to supply and heading into month-end, while participants look ahead to upcoming data releases from the US.
German bund futures traded rangebound after the lack of surprises from ECB commentary and with eyes on Sintra.
10-year Japanese government bond (JGB) futures were lacklustre amid an uninspired mood across global peers and with price action not helped by mixed results at the 20-year JGB auction.
In commodities, crude oil futures remained confined to within a thin range after the prior day's indecisive performance.
Spot gold eked slight gains with mild tailwinds across the commodity complex from a softer greenback.
Copper futures nursed some of yesterday's losses with prices underpinned by the improved risk appetite.
Looking ahead, key economic data releases include US durable goods orders, consumer confidence, and new home sales. There will also be a number of central bank speeches, including from ECB President Christine Lagarde, ECB Executive Board member Fabio Panetta, and BoE Deputy Governor Dave Ramsden.
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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