Wednesday 23rd June 2021: Markets begin to stabilize from aftereffects of Fed’s comments

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei down 0.03%, Shanghai Composite up 0.25%, Hang Seng up 1.96%, ASX down 0.60%
  • Commodities : Gold at $1783.10 (+0.32%), Silver at $26.02 (+0.62%), Brent Oil at $75.45 (+0.86%), WTI Oil at $73.36 (+0.70%)
  • Rates : US 10-year yield at 1.472, UK 10-year yield at 0.781, Germany 10-year yield at -0.170

News & Data:

  • (EUR) Flash Services PMI 58 vs 58.1 expected
  • (EUR) Flash Manufacturing PMI 63.1 vs 62.4 expected
  • (EUR) German Flash Services PMI 58.1 vs 55.8 expected
  • (EUR) German Flash Manufacturing PMI 64.9 vs 63 expected
  • (EUR) French Flash Services PMI 57.4 vs 59.6 expected
  • (EUR) French Flash Manufacturing PMI 58.6 vs 59 expected

Markets Update:

Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues overnight from Wall Street on easing concerns over the outlook for interest rates. The US Federal Reserve Chair Jerome Powell continued to downplay the risks of inflation during a testimony before the House Select Subcommittee on the Coronavirus Crisis, also noting that the economy has shown sustained improvement recently.

The Japanese stock market is flat after treading briefly into the red in choppy trading on Wednesday, extending the strong gains of the previous session, with the benchmark Nikkei index just above the 28,900 level. Mainland Chinese stocks were higher by the afternoon, with the Shanghai composite rising 0.3% and the Shenzhen component gained 1%. The Australian stock market is modestly lower on Wednesday, giving up some of the strong gains of the previous session, with the benchmark S&P/ASX 200 staying just above the 7,300 level.

The dollar and U.S. Treasury yields held declines, while bitcoin rebounded from its fall below the $30,000 mark.

Upcoming Events:

  • 08:30 AM GMT – (GBP) Flash Manufacturing PMI
  • 08:30 AM GMT – (GBP) Flash Services PMI
  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
  • 12:30 PM GMT – (CAD) Retail Sales m/m
  • 01:45 PM GMT – (USD) Flash Manufacturing PMI
  • 01:45 PM GMT – (USD) Flash Services PMI
  • 02:30 PM GMT – (USD) Crude Oil Inventories