_edited_edited.png)
Market Update: APAC Stocks Under Pressure Amid Wall Street Banking Concerns Ahead of FOMC Meeting
Today's important market events:
[USD] ADP Nonfarm Employment Change (Apr) - 14:15 CEST
[USD] Servies PMI (Apr) - 15:45 CEST
[USD] ISM Non-Manifacturing PMI (Apr) - 16:00 CEST
[USD] Crude Oil Inventories - 16:30 CEST
[USD] FOMC - Interest Rate Decision - 20:00 CEST
[USD] FOMC Press Conference - 20:30 CEST
Most APAC stocks suffered losses following Wall Street's decline, amid regional banking concerns that resulted in the regional banking ETF closing down over 6%. The White House reassured that they have the necessary tools to keep the banking system safe, and the FDIC will continue to monitor the situation.
However, European equity futures show signs of opening higher, with the Euro Stoxx 50 up by 0.5% after the cash market closed 1.5% lower yesterday. The DXY remains subdued at 101, while EUR/USD maintains its status at 1.10, and GBP/USD struggles to reclaim 1.25. The NZD is performing well.
APAC stocks were mixed on Wednesday with Australia's ASX 200 down by 0.7% at 7,219, and South Korea's Kospi down by 0.6% at 2,510. Hong Kong's Hang Seng opened down by 1.2% at 19,686. Meanwhile, Japan's Nikkei 225 and China's Shanghai Composite were closed for holidays.
In Australia, the Reserve Bank of Australia (RBA) Governor, Lowe, said that some further tightening may be required to meet the time frame. The country's Mar Retail Sales came in at 0.4%, beating the estimated 0.2%, while the Apr Final PMI Services was reported at 53.7, up from the preliminary figure of 52.6. Moreover, the country sold A$800M worth of 4.50% Apr 2033 bonds at an average yield of 3.3617%, with a bid-to-cover of 4.11x.
The Reserve Bank of New Zealand (RBNZ) released its Financial Stability Review, and the country's Q1 Unemployment Rate came in at 3.4%, lower than the estimated 3.5%. The RBNZ Deputy Governor, Hawkesby, stated that the New Zealand labour market remains strong, but did not comment on monetary policy. The country's Apr Corelogic House Prices Y/Y was reported at -10.3%.
In Hong Kong, the Q1 Advance GDP Q/Q came in at 5.3%, beating the estimated 3.0%, while the Y/Y figure was reported at 2.7%, higher than the estimated 0.5%.
The Bank of Korea Governor, Rhee, stated that it is a little premature to talk about policy pivot and that it is the right time to assess the accumulated effect, given that core inflation is still high. The Bank of Korea's Apr Minutes suggest that the pace of core CPI easing will be slower than headline inflation.
In Europe, the Euro Stoxx 50 is set to open higher by 0.5% after closing lower by 1.5% on Tuesday. The Euro Zone's Apr CPI estimate Y/Y was reported at 7.0%, in line with the estimated figure, while the CPI core Y/Y was reported at 5.6%, decelerating for the first time in ten months and moving off the record high.
Looking ahead, highlights include EZ Unemployment, US ADP & ISM Services, FOMC Policy Announcement & Press Conference, US Quarterly Refunding & Press Conference, and Supply from the UK and Germany. Earnings from Airbus, BNP Paribas, Stellantis, Lufthansa, Deutsche Post, Haleon, Flutter, and Qualcomm are also expected.
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