Wednesday 23rd November 2022: Asian markets higher as traders await Fed direction

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Global Markets:

  • Asian Stock Markets : Shanghai Composite up 0.26%, Hang Seng up 0.68%, ASX up 0.70%
  • Commodities : Gold at $1743.00 (+0.18%), Silver at $21.22 (+0.81%), Brent Oil at $89.34 (+1.11%), WTI Oil at $81.73 (+0.96%)
  • Rates : US 10-year yield at 3.772, UK 10-year yield at 3.152, Germany 10-year yield at 2.010

News & Data:

  • (EUR) French Flash Manufacturing PMI 49.1 vs 46.9 expected
  • (EUR) French Flash Services PMI 49.4 vs 50.6 expected
  • (NZD) Official Cash Rate 4.25% vs 4.25% expected
  • (USD) Richmond Manufacturing Index -9 vs -9 expected
  • (CAD) Retail Sales m/m -0.50% vs -0.50% expected
  • (CAD) Core Retail Sales m/m -0.70% vs -0.60% expected

Markets Update:

Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from global markets overnight, as traders continued to express optimism about the US Fed slowing the pace of its interest rate hikes despite some hawkish comments from Fed officials. Asian Markets closed mixed on Tuesday.

The Fed’s next monetary policy meeting is scheduled for December 13-14, with CME Group’s FedWatch Tool currently indicating a 75.8 percent chance of a 50 basis point rate hike and a 24.2 percent chance of another 75 basis point rate hike. However, lingering concerns about inflation, geopolitical tensions, and a surge in COVID-19 cases in China remain. 

Hong Kong’s Hang Seng index was the best performer in Asia, rising 1% after tumbling over the past five sessions. Gains in Chinese stocks were somewhat muted. Malaysian stocks lagged their peers for a third straight session, amid continued uncertainty over the country’s next Prime Minister. The Australian stock market is significantly higher, led by heavyweight mining and energy stocks amid a spike in commodity prices. 

Crude oil prices rose sharply on Tuesday, lifted by Saudi Arabia’s statement that OPEC+ would stick with output cuts and could likely take steps to balance the market. The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was mildly weaker at 107.07.

Upcoming Events:

  • 08:15 AM GMT – (EUR) French Flash Services PMI
  • 08:15 AM GMT – (EUR) French Flash Manufacturing PMI
  • 08:30 AM GMT – (EUR) German Flash Manufacturing PMI
  • 08:30 AM GMT – (EUR) German Flash Services PMI
  • 09:30 AM GMT – (GBP) Flash Manufacturing PMI
  • 09:30 AM GMT – (GBP) Flash Services PMI
  • 01:30 PM GMT – (USD) Core Durable Goods Orders m/m
  • 01:30 PM GMT – (USD) Durable Goods Orders m/m
  • 01:30 PM GMT – (USD) Unemployment Claims
  • 02:45 PM GMT – (USD) Flash Services PMI
  • 02:45 PM GMT – (USD) Flash Manufacturing PMI
  • 03:00 PM GMT – (USD) New Home Sales
  • 03:00 PM GMT – (USD) Revised UoM Consumer Sentiment
  • 07:00 PM GMT – (USD) FOMC Meeting Minutes