For the first three quarters of the year, GDP grew 5.2% Y/Y, driven by consumption. Core inflation was also marginally ahead of expectations at 6.1% YoY from the 6.0% estimate. September CPI was above expectations at 6.7% YoY vs. UK inflation data came in slightly hot.Fed’s Waller said it is too soon to tell if more policy rate action is needed and they can wait, watch, and see before making definitive moves on the policy path.Copper held up the $3.55 support while Gold rose to fresh three-month highs amid safe-haven buying despite the surge in Treasury yields. Risk remains with Iran also announcing an oil embargo against Israel which continues to threaten escalations. Recovery in China’s economic data also supported crude prices. ![]() GBPUSD wobbled but ended lower around 1.2140 amid BOE dovish repricing risks.Ĭommodities: Oil jumped higher again on Wednesday amid geopolitical concerns ramping up following the hospital bombing in Gaza and official inventory data showing largest US hub stocks at 9-year lows. AUDNZD broke above 1.08 but still far from 1.10 to confirm an uptrend. Other activity currencies also fell, NOK and CAD both falling despite higher oil prices. AUDUSD reversed from highs of 0.6393 printed after China’s data beat as risk sentiment remained weak and jobs data today will be on watch. Chair Powell’s comments today will be key to assess whether he follows other board members’ views on financial tightening or stays neutral on geopolitical concerns. The CSI300 lost 0.8%, driven by weakness in TMT stocks.įX: DXY was stronger overnight, but the strength is failing to reflect the strong gains in Treasury yields with 10-year yields at new highs of over 4.9%. Technology names sold off, seeing the Hang Seng Tech Index falling 1.7%, underperforming the Hang Seng Index’s modest decline of 0.2%. ![]() Country Garden said in a statement that it “is incapable of meeting all the repayment obligations of its external debt items in time”. Additionally, market sentiment worsened on Country Garden’s first default as the second-largest Chinese developer failed to pay interest on a USD bond as the grace period lapsed. It briefly halted the selloff before yields climbed again to close near day highs.Ĭhina/HK Equities: The stronger-than-expected Chinese economic data failed to excite investors who were instead troubled by the tightening of US export restrictions on advanced AI chips, including Nvidia’s A800, H800 and L40S, and semiconductor manufacturing items to China. The 20-year Treasury bond auction results showed decent demand investor demand. The rise in US yields started early in the day following the post-UK inflation data selloff in Gilts. The heightened geopolitical tension in the Middle East and the declines in the share prices of Tesla ahead of earnings also weighed on the indices.įixed income: The 10-year Treasury yield rose 8bps to finish the session at 4.91%, reaching a new high since 2007 while the 2-year yield ended 1bp higher at 5.22%. US Equities: The S&P 500 fell 1.3% and the Nasdaq 100 declined 1.4% as Treasury yields continued to surge.
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