Global Markets:
- Asian Stock Markets : Nikkei up 1.23%, Shanghai Composite down 0.10%, Hang Seng down 0.78%, ASX down 0.03%
- Commodities : Gold at $1910.95 (-0.56%), Silver at $24.19 (-0.75%), Brent Oil at $85.07 (+0.72%), WTI Oil at $79.97 (-0.17%)
- Rates : US 10-year yield at 3.553, UK 10-year yield at 3.463, Germany 10-year yield at 2.193
News & Data:
- (GBP) Average Earnings Index 3m/y 6.40% vs 6.20% expected
- (GBP) Claimant Count Change 19.7K vs 19.8K expected
- (CNY) GDP q/y 2.90% vs 1.60% expected
Markets Update:
Asian stocks turned in a mixed performance on Tuesday as China growth data beat forecasts and caution prevailed ahead of a Bank of Japan policy meeting. The yen steadied around 128.69 and Japanese 10-year government bond yields topped the Bank of Japan’s (BOJ) policy ceiling for a third straight session amid speculation the central bank might call for an exit from its decade-long ultra-loose monetary policy on Wednesday.
In mainland China, the Shenzhen Component struggled for direction and traded fractionally lower and the Shanghai Composite fell 0.25% as data showed nation’s GDP grew by 3% in 2022, marking one of the slowest growth in decades. Stocks in Japan bucked the trend, with the Nikkei 225 rising 1.28%, leading gains in the region as the Bank of Japan kicked off its two-day monetary policy meeting. Australian markets ended marginally lower to snap a four-day rally as miners declined, offsetting gains in the healthcare sector.
The dollar index bounced from a seven-month low of 101.77 made a day ago, holding at 102.30, while the Japanese yen stayed close to seven-month highs as investors held their breath for a potential policy shift at the Bank of Japan (BOJ).
Upcoming Events:
- Day 2 – (All) WEF Annual Meetings
- 10:00 AM GMT – (EUR) German ZEW Economic Sentiment
- 01:30 PM GMT – (CAD) CPI m/m
- 01:30 PM GMT – (CAD) Median CPI y/y
- 01:30 PM GMT – (CAD) Trimmed CPI y/y
- 01:30 PM GMT – (CAD) Common CPI y/y
- 01:30 PM GMT – (USD) Empire State Manufacturing Index
