Wednesday 17th October: Asian markets echo Wall Street’s cheer

IC Markets Market Review
IC Markets Market Review

Global Markets:

  • Asian Stock Markets : Nikkei up 1.27%, Shanghai Composite up 0.54%, ASX up 1.18%
  • Commodities : Gold at $1226.10 (-0.40%), Silver at $14.67 (-0.24%), Brent Oil at $81.64 (+0.28%), WTI Oil at $72.09 (+0.24%)
  • Rates : US 10-year yield at 3.165, UK 10-year yield at 1.611, Germany 10-year yield at 0.487

News & Data:

  • (CAD) Foreign Securities Purchases 2.82B vs 10.05B expected
  • (GBP) Unemployment Rate 4.00% vs 4.00% expected
  • (GBP) Average Earnings Index 3m/y 2.70% vs 2.60% expected
  • Trump Says Federal Reserve Rate Hikes Are His ‘Biggest Threat’
  • China economic health check may show slowing GDP growth in wake of trade war
  • The RBA is confident about job creation but wages growth remains an open question

Markets Update:

Asian stock markets are in positive territory on Wednesday, with some of the markets recording gains of more than 1 percent, as upbeat U.S. corporate earnings results and strong economic data helped offset worries about trade tensions and rising interest rates.

Japan’s Nikkei galloped out of the gates with a rise of 1.3 percent, but still has a way to go to recoup the past week’s losses. The major exporters are higher on a weaker yen. Panasonic, Sony and Mitsubishi Electric are rising more than 2 percent each, while Canon is advancing more than 1 percent. The mainland Chinese markets were higher, with both Shanghai composite and the Shenzhen indices rising by 0.5%.

All this cheer favored beaten-down currencies in emerging markets while taking some steam out of the safe-haven yen. The MSCI Emerging Market Currency Index rose for a third straight session. The latest survey of global fund managers by BofA Merrill Lynch found they saw emerging market currencies as the most undervalued ever against the U.S. dollar. Minutes of the last Fed meeting are due out later Wednesday and expected to show policy makers remain committed to further gradual tightening.

Oil prices edged up as industry data showed a surprise decline in U.S. crude inventories. There was also a risk that crude supply from the Middle East could be disrupted by looming U.S. sanctions on Iran and growing tensions with top exporter Saudi Arabia.

Upcoming Events:

  • 09:30 AM GMT – (GBP) CPI y/y
  • 09:30 AM GMT – (GBP) PPI Input m/m
  • 09:30 AM GMT – (GBP) RPI y/y
  • 01:30 PM GMT – (CAD) Manufacturing Sales m/m
  • 01:30 PM GMT – (USD) Building Permits
  • 01:30 PM GMT – (USD) Housing Starts
  • 03:30 PM GMT – (USD) Crude Oil Inventories
  • 05:10 PM GMT – (USD) FOMC Member Brainard Speaks
  • 05:30 PM GMT – (EUR) German Buba President Weidmann Speaks
  • 06:00 PM GMT – (GBP) MPC Member Broadbent Speaks
  • 07:00 PM GMT – (USD) FOMC Meeting Minutes
  • &more…


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