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Markets Update: APAC Stocks Mixed; Tech Sector Leads Gains on ASX 200, Nikkei 225 Turns Lower on BOJ Comments, DXY Holds Upward Bias, European Futures Subdued.
Economic Calendar
Global Markets Roundup: 08 Nov 2023
Asia-Pacific stocks traded mixed to mostly firmer on Wednesday, following a similar lead from Wall Street. The breadth of markets in APAC hours was particularly narrow. The US Dollar Index (DXY) held a modest upward bias, with G10 currencies mostly subdued in what was a contained session for FX. European equity futures are indicative of a subdued open, with the Euro Stoxx 50 future -0.3% after cash markets closed -0.1% yesterday.
The ASX 200 saw the tech sector leading the gains on Wednesday, following a similar yield-driven sectoral performance on Wall Street. The Nikkei 225 was initially supported by the Electronics sector, with Nintendo shares rising over 6% post-earnings. However, the index eventually fell into losses as BoJ governor Ueda said the Bank doesn't necessarily need to wait until real wages actually turn positive in exiting yield curve control (YCC) and negative rates.
He added that if the BoJ thinks there is a strong chance real wages will turn positive in the future, that may be sufficient in making a decision on whether to continue with YCC and negative rates.
The Hang Seng and Shanghai Comp moved between modest gains and losses with little action seen despite a slew of comments from the PBoC governor. Markets braced for next week's Biden-Xi meeting in San Francisco, although no major breakthrough is expected.
FX
The US Dollar Index (DXY) held a modest upward bias, trading within a narrow 105.51-105.68 range. EUR/USD and GBP/USD traded sideways, remaining within their respective ranges from the previous day. USD/JPY saw a slight pickup of momentum, breaching 150.50 early in the APAC session and reaching a fresh session high before stabilizing around 150.50. Antipodeans consolidated following the prior day's hefty losses.
Fixed Income
10-year US Treasury (UST) futures were subdued, tracking the bull-flattening seen in Treasuries on Wednesday amid softening global economic data and well-received supply. Bund futures held a modestly firmer bias, while 10-year JGB futures were also modestly firmer.
Commodities
Crude oil futures consolidated after the previous day's hefty losses, with an added downside seen from a large surprise build in private inventories. Spot gold was flat within recent ranges, while copper futures were uneventful.
Key takeaways:
DXY held a modest upward bias
EUR/USD and GBP/USD traded sideways
USD/JPY saw a slight pickup of momentum
Antipodeans consolidated
10-year UST futures were subdued
Bund futures held a modestly firmer bias
10-year JGB futures were also modestly firmer
Crude futures consolidated
Spot gold was flat within recent ranges
Copper futures were uneventful
Looking ahead:
Highlights include German CPI (Final), NBP Policy Announcement; Norges Bank FSR, ECB Consumer Expectations Survey, BoC Minutes, Speeches from Fed’s Cook, Powell, Williams, Barr & Jefferson; BoE’s Bailey; ECB’s Lane & Makhlouf, Supply from UK, Germany & US
Earnings: Adidas, Airbus, Bayer, Telecom Italia, Ralph Lauren, Kellogg, Disney, BlackRock, Warner Bros Discovery
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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