28th June 2022 Tuesday: Asian markets lower as negative sentiment from Wall Street spills over

Global Markets:

• Asian Stock Markets : Nikkei up 0.25%, Shanghai Composite down 0.06%, Hang Seng down 0.77%, ASX up 0.55%
• Commodities : Gold at $1827.00 (+0.12%), Silver at $21.18 (-0.03%), Brent Oil at $112.38 (+1.26%), WTI Oil at $110.86 (+1.18%)
• Rates : US 10-year yield at 3.179, UK 10-year yield at 2.397, Germany 10-year yield at 1.539

News & Data:

• (USD) Pending Home Sales m/m 0.70% vs -3.50% expected
• (USD) Durable Goods Orders m/m 0.70% vs 0.10% expected
• (USD) Core Durable Goods Orders m/m 0.70% vs 0.40% expected
• Goldman Sachs Says US Rates Market Underprices Recession Risk

Markets Update:

Asian stock markets are trading mixed on Tuesday, following the broadly negative cues from Wall Street overnight, as investors remained cautious, while reassessing the outlook for the interest rate hikes by major central banks amid persistent inflation and a potential recession. Investors also await the U.S. quarterly GDP growth rate numbers due later in the week to assess the outlook for U.S. rate hikes and the potential for a recession. Buying interest may be somewhat subdued, however, as concerns about inflation and a potential recession continue to hang over the markets.

The Australian stock market is slightly higher on Tuesday, boosted largely by strong rebound in gold miners, materials and energy stocks, partially offset by weakness in technology and financial stocks. Hong Kong’s Hang Seng index fell 0.8%, while the Hang Seng Tech index slipped 1.6%. Mainland Chinese markets were little changed. The Shanghai Composite was just below the flatline and the Shenzhen Component inched up fractionally. The Japanese stock market is slightly higher, even as it was dragged by weakness in technology stocks.

Oil futures settled higher on Monday, extending gains from the previous session amid slightly easing worries about outlook for energy demand. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 103.918.

Upcoming Events:

• 08:00 AM GMT – (EUR) ECB President Lagarde Speaks
• Day 3 – (All) G7 Meetings
• 02:00 PM GMT – (USD) CB Consumer Confidence
• 02:00 PM GMT – (USD) Richmond Manufacturing Index