Wednesday 28th April 2021: Asian markets in the green, as investors await Fed signalling

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.21%, Shanghai Composite up 0.42%, Hang Seng up 0.37%, ASX up 0.44%
  • Commodities : Gold at $1769.25 (-0.54%), Silver at $26.08 (-1.27%), Brent Oil at $65.92 (+0.08%), WTI Oil at $63.01 (+0.11%)
  • Rates : US 10-year yield at 1.641, UK 10-year yield at 0.829, Germany 10-year yield at -0.218

News & Data:

  • (CHF) Credit Suisse Economic Expectations 68.3 vs 66.7 previous
  • (EUR) German GfK Consumer Climate -8.8 vs -4.1 expected
  • (AUD) Goods Trade Balance 8.50B vs 7.54B previous
  • (AUD) Trimmed Mean CPI q/q 0.30% vs 0.50% expected
  • (AUD) CPI q/q 0.60% vs 0.90% expected
  • (JPY) Retail Sales y/y 5.20% vs 4.60% expected
  • (GBP) BRC Shop Price Index y/y -1.30% vs -2.40% previous
  • (USD) CB Consumer Confidence 121.7 vs 113.1 expected
  • (USD) Richmond Manufacturing Index 17 vs 22 expected
  • (USD) S&P/CS Composite-20 HPI y/y 11.90% vs 11.80% expected
  • (USD) HPI m/m 0.90% vs 1.00% expected
  • (GBP) CBI Realized Sales 20 vs 9 expected

Markets Update:

Asian stocks rose slightly in cautious trade on Wednesday as investors awaited the results of the U.S. Federal Open Market Committee (FOMC) meeting later in the day for further insight into the bank’s thinking on inflation and bond purchases.

Investors also awaited U.S. President Joe Biden’s address to a joint session of Congress for clues on further stimulus measures.

Mainland Chinese stocks closed higher as the Shanghai composite advanced 0.4% while the Shenzhen component gained 0.9%. Australian markets eked out modest gains, led by banks and energy companies. Japan’s retail sales rose 5.2% in March as compared with a year ago, according to government data. That was higher than a median market forecast for a 4.7% gain, according to Reuters.

The dollar edged up slightly against the yen and the British pound, but trading is expected to be subdued until Powell speaks after the Fed meeting. Benchmark copper fell from a decade high of $9,965 a tonne hit on Tuesday due to concerns about softening demand in China, the world’s top consumer of the metal.

Upcoming Events:

  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
  • 12:30 PM GMT – (CAD) Retail Sales m/m
  • 02:00 PM GMT – (EUR) ECB President Lagarde Speaks
  • 02:30 PM GMT – (USD) Crude Oil Inventories
  • 06:00 PM GMT – (USD) FOMC Statement
  • 06:00 PM GMT – (USD) Federal Funds Rate
  • 06:30 PM GMT – (USD) FOMC Press Conference