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Markets Update: APAC Stocks Buoyed by Wall Street, Europe Set for Firmer Open, Geopolitical Tensions Simmer.
Economic Calendar
Global Markets Roundup: 20 Dec 2023
Asia-Pacific stocks mostly sailed higher on Wednesday, riding the coattails of a positive Wall Street session. The pre-Christmas lull kept newsflow light, but dovish comments from BoJ Governor Ueda sent the Nikkei 225 and JGB futures surging. European equity futures also hinted at a firmer cash open, with the Euro Stoxx 50 index up 0.2% after Tuesday's 0.3% gain. However, geopolitics remained a simmering concern.Â
The Australian ASX 200 rose Wednesday, fueled by gains in the Energy and Metals sectors. Tech stocks lagged behind, posting smaller gains. In Japan, the Nikkei 225 surged after Bank of Japan Governor Ueda's dovish press conference following yesterday's unchanged monetary policy announcement. His comments reassured investors seeking continued easy money policies. Hong Kong's Hang Seng traded mixed, with large-cap US-listed companies like Alibaba, JD.com, and Baidu driving the index higher. The mainland Chinese market remained subdued despite the People's Bank of China's expected decision to maintain Loan Prime Rates and its liquidity injections.
FX: The US Dollar Index (DXY) traded within a tight band on Wednesday, reflecting light newsflow in Asia-Pacific hours. Traders remain on the sidelines, awaiting key US data releases like PCE before the Christmas break. EUR/USD faded from overnight highs and spent most of the session near session lows, but held onto most of yesterday's gains. GBP/USD mirrored the Dollar's tight range ahead of UK inflation data. USD/JPY remained subdued below 144.00, following Tuesday's BoJ-driven surge that briefly tested 145.00. AUD and NZD maintained a mild upward bias, while the Kiwi showed little reaction to its DMO and fiscal update, despite the New Zealand Treasury's projected GDP growth.
FIXED INCOME: 10-year UST futures held a positive bias after mild buying on Tuesday, with traders waiting for today's 20-year auction. Bund futures traded sideways before edging higher in Asia-Pacific. 10-year JGB futures surged as traders reacted to BoJ Governor Ueda's press conference. The 10-year yield dipped from 60bps to under 57bps at one point.
COMMODITIES: Crude oil futures were indecisive, following a surprise build in private inventories, continued Red Sea disruptions, and a softer Dollar. Spot gold traded flat around USD 2,040/oz, facing potential resistance near highs from December 14th and 19th. Copper futures were supported by the positive sentiment but capped by losses in Mainland China.
Key data releases to watch later include German GfK consumer confidence, UK CPI and PPI, EZ consumer confidence (flash), US consumer confidence, BoC minutes, and speeches from ECB's Lane, Fed's Goolsbee, and Supply from the 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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