Wednesday 30th November 2022: Chinese COVID counts appear to have peaked, markets positive

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Global Markets:

  • Asian Stock Markets : Nikkei down 0.21%, Shanghai Composite up 0.05%, Hang Seng up 2.31%, ASX up 0.43%
  • Commodities : Gold at $1769.80 (+1.22%), Silver at $21.50 (+0.49%), Brent Oil at $84.81 (+0.66%), WTI Oil at $78.66 (+0.59%)
  • Rates : US 10-year yield at 3.724, UK 10-year yield at 3.140, Germany 10-year yield at 1.939

News & Data:

  • (AUD) CPI y/y 6.90% vs 7.60% expected
  • (USD) CB Consumer Confidence 100.2 vs 100 expected
  • (CAD) GDP m/m 0.10% vs 0.10% expected
  • (EUR) German Prelim CPI m/m -0.50% vs -0.20% expected

Markets Update:

Asian stock markets are trading mostly higher on Wednesday, following the mixed cues from global markets overnight, as traders remain cautious ahead of key economic events that are likely to affect the outlook for interest rates. The first decrease in new Covid infections in more than a week in China is generating some positive sentiment.  US Fed Chair Jerome Powell’s speech on U.S. economic outlook and labor market at an event in Washington are expected to provide additional cues on the outlook for interest rates. Officials in China have defended the zero-Covid policy at a press briefing on Tuesday but said lockdowns would be lifted “as quickly as possible.”

Hong Kong’s Hang Seng index briefly rose 2% in its final hour of trade, with the Hang Seng Tech index trading 2.66% higher. The Japanese stock market is significantly lower in choppy trading on Wednesday, extending the losses in the previous three sessions, with weakness in technology and financial stocks. Release of domestic data showing a sharper-than-expected dip in industrial production also weighed on market sentiment. The Australian stock market pares early losses to be modestly higher, with particular strength in mining stocks amid improving base metal prices, partially offset by weakness in energy stocks.

Crude oil futures settled higher Tuesday, extending gains from the previous session on hopes that OPEC may trim production to support prices later this week. West Texas Intermediate Crude oil futures for January ended higher by $$0.96 or 1.2 percent at $78.20 a barrel.

Upcoming Events:

  • 10:00 AM GMT – (EUR) CPI Flash Estimate y/y
  • 10:00 AM GMT – (EUR) Core CPI Flash Estimate y/y
  • 01:15 PM GMT – (USD) ADP Non-Farm Employment Change
  • 01:30 PM GMT – (USD) Prelim GDP q/q
  • 03:00 PM GMT – (USD) JOLTS Job Openings
  • 03:00 PM GMT – (USD) Pending Home Sales m/m
  • 06:30 PM GMT – (USD) Fed Chair Powell Speaks