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Markets Update: APAC Stocks Mixed as Earnings and PMI Data Weigh - JP & AU Mfg PMIs stay in contraction; Asia equities mixed; CN supports Yuan again with intervention & strong fix; 10-yr JGBs extend 9-yr highs;
Economic Calendar
Global Markets Roundup: 23 Aug 2023
Asian stocks were mixed on Wednesday, with markets digesting a slew of earnings releases and the latest PMI data from the region.
The Australian stock market (ASX 200) was slightly lower, while the Japanese stock market (Nikkei 225) was up slightly. The Hong Kong stock market (Hang Seng) and the Chinese stock market (Shanghai Composite) were also mixed.
Fed's Barkin (2024 voter) said the US economy could reaccelerate before inflation cools and he won't prejudge the outcome of the Fed's September meeting.
The dollar gave back some of the prior day's gains, but remained relatively rangebound ahead of flash PMIs and the Fed's Jackson Hole Symposium. Woodside Energy is meeting unions for talks as strike threats loom over Australian LNG facilities. Talks are expected to continue until the evening, according to Bloomberg.
Australian stock market (ASX 200) was led higher by strength in consumer stocks and the mining sector, with the index unfazed by weaker PMI data from Australia which showed manufacturing at a 6th consecutive monthly contraction.
The Japanese stock market (Nikkei 225) pared opening losses although the upside was capped ahead of the 32,000 level after mixed PMI figures, and with Japan facing backlash from China and Hong Kong for its plan to release Fukushima water.
The Hong Kong stock market (Hang Seng) and the Chinese stock market (Shanghai Composite) were both higher, with trade in Hong Kong indecisive and the mainland subdued amid several earnings releases, and as participants await results from China’s big banks.
US equity futures rebounded off the prior day's lows, albeit with upside limited ahead of Nvidia's earnings. European equity futures are indicative of a slightly higher open with the Eurostoxx 50 future +0.1% after the cash market closed up by 0.8% yesterday.
FX
The dollar gave back some of the prior day's gains, albeit with price action contained as participants await the next risk events including Flash PMIs later today ahead of Jackson Hole and Fed Chair Powell's comments on Friday.
The euro was uneventful following the prior day's slide to back beneath the 1.0900 handle.
The pound attempted to nurse some of the losses from its recent fall from resistance at the 1.2800 level.
The US dollar weakened against the Japanese yen after US-Japan long-term yield differentials slightly narrowed.
The Australian dollar and New Zealand dollar were kept afloat with early tailwinds from another much firmer-than-expected CNY reference rate.
Fixed Income
10-year UST futures eked modest gains with price action contained after yesterday’s choppy performance across bonds which resulted in deeper yield curve inversion.
Bund futures extended on advances but with upside capped ahead of PMI data from across the bloc.
10-year JGB futures were ultimately flat, but saw early upside amid the BoJ’s presence in the market for nearly JPY 1.1tln of JGBs on top of its fixed rate operations. The gains were later unwound with Japan's 10-year yield touching its highest since January 2014.
Commodities
Crude futures traded rangebound as a softer dollar offset the narrower-than-expected draw in headline private sector crude inventories, while participants await the outcome of talks amid the union members' deadline for their demands to be met to avert potential strike action at Australian LNG facilities in 7 working days.
US Energy Inventory Data (bbls): Crude -2.4mln (exp. -2.9mln), Gasoline 1.9mln (exp. -0.9mln), Distillate -0.2mln (exp. +0.2mln), Cushing -2.2mln.
Woodside Energy (WDS AT) is meeting unions for talks as strike threats loom over Australian LNG facilities. Talks are expected to continue until the evening, according to Bloomberg.
Spot gold edged higher and reclaimed the psychological USD 1,900/oz level amid a softer dollar.
Copper futures were kept afloat albeit with price action contained by the mixed risk appetite.
Looking ahead, key economic data releases include EZ, UK, US Flash PMIs, US MBA, Canadian Retail Sales, Supply from Germany & US, Earnings from NVIDIA Corp, and the BRICS summit.
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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