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Markets Update: Asia equities higher after soft US JOLTS; Soft AU CPI sees A$, NZ$ down, equities up; Busy data Thu & Fri coming up;
Economic Calendar
Global Markets Roundup: 30 Aug 2023
APAC stocks traded positively on Wednesday, following the gains seen on Wall Street on Tuesday. The gains were led by Japan and South Korea, while mainland China underperformed. The US dollar index (DXY) was steady after the prior day's slump, finding overnight support near 103.50.
The index was supported by the firmer tone in APAC stocks and the weaker Australian dollar. The Australian dollar (AUD) was dented by softer-than-expected CPI data. The data showed that inflation in Australia slowed to 2.5% in the year to June, below the 2.6% expected by economists.
BoJ Board Member Tamara said it is appropriate to keep easy policy now and he doesn't expect the 10-year Japanese government bond (JGB) yield to hit 1.0%.
European equity futures are indicative of a firmer open, with the Euro Stoxx 50 future +0.4% after cash markets closed +0.8%.
Crude Oil
Crude oil futures held an upward bias after the prior day's sentiment-driven gains.
The market was also supported by the much larger-than-expected draw in private crude inventories.
Traders are also focused on the situation in the Gulf of Mexico, where Hurricane Idalia has been upgraded to a category 2 hurricane and is forecast to strengthen to category 4.
US Energy Inventory Data
Crude oil inventories decreased by 11.5 million barrels, more than the 2.9 million-barrel decline expected by analysts.
Gasoline inventories increased by 1.4 million barrels, while distillate inventories increased by 2.5 million barrels.
Cushing crude oil inventories decreased by 2.2 million barrels.
Hurricane Idalia
The National Hurricane Center (NHC) said that Hurricane Idalia is expected to become a category 4 hurricane before landfall in Florida.
Spot Gold
Spot gold was flat but held onto Tuesday's gains after topping its 50-day moving average (DMA) of USD 1,929 per ounce in the prior session.
Copper Futures
Copper futures opened with an upward bias in China amid the broader global risk tone.
Vale executive said that Chinese steel demand is declining less than some indicators suggest.
Looking Ahead
The main economic releases for the day include:
German and Spanish CPI
US ADP National Employment
US GDP Estimates (Preliminary) and PCE Prices Prelim (Q2)
Speech from ECB's Centeno
Supply from Germany and Italy
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team