Global Markets:
- Asian Stock Markets : Nikkei up 0.79%, Shanghai Composite up 0.11%, Hang Seng up 1.23% ASX up 0.34%
- Commodities : Gold at $3,680.45 (-0.05%), Silver at $41.692 (0.85%), Brent Oil at $67.12 (1.10%), WTI Oil at $63.36 (0.73%)
- Rates : US 10-year yield at 4.082, UK 10-year yield at 4.6240, Germany 10-year yield at 2.6644
News & Data:
- (USD) NFIB Small Business Index 100.8 to 100.5 expected
Markets Update:
Asian stock markets traded mostly higher on Wednesday, lifted by overnight gains on Wall Street and optimism over U.S. interest rate cuts. Sentiment was supported by downward revisions in U.S. jobs data and anticipation of key inflation figures due later this week. Regional currencies also firmed against the U.S. dollar.
The U.S. Labor Department will release producer and consumer price inflation data today and tomorrow, which could shape the Fed’s rate decision next week. Markets currently expect nearly three rate cuts this year, starting in September. The CME FedWatch Tool shows a 93.7% chance of a quarter-point cut and a 6.3% probability of a half-point move.
In Australia, the S&P/ASX 200 rose 15.20 points, or 0.17%, to 8,818.70, led by banks and tech firms, though miners and energy stocks declined. Iluka Resources slumped over 11% after announcing plans to halt production at its Cataby mine. The Aussie dollar traded at $0.659.
Japan’s Nikkei 225 climbed 225 points, or 0.52%, to 43,684.29, with gains in SoftBank and tech stocks offsetting weakness in automakers and banks.
Elsewhere, New Zealand, Hong Kong, South Korea, Singapore, Indonesia, and Taiwan rose between 0.7% and 1.3%, while China and Malaysia were flat.
On Wall Street, the Dow gained 0.4%, the Nasdaq added 0.4%, and the S&P 500 advanced 0.3%, all ending at record highs.
Upcoming Events:
- 12:30 PM GMT – USD Core PPI m/m
- 12:30 PM GMT – USD PPI m/m
