Wednesday 13th November: Asian markets fall as tensions from Hong Kong’s turmoil spills over

Global Markets:

• Asian Stock Markets : Nikkei down 0.85%, Shanghai Composite down 0.41%, Hang Seng down 2.09%, ASX down 0.81%
• Commodities : Gold at $1463.15 (+0.65%), Silver at $16.92 (+1.35%), Brent Oil at $61.77 (-0.47%), WTI Oil at $56.56 (-0.42%)
• Rates : US 10-year yield at 1.921, UK 10-year yield at 0.813, Germany 10-year yield at -0.267

News & Data:

• (NZD) Official Cash Rate 1.00% vs 0.75% expected
• (AUD) Wage Price Index q/q 0.50% vs 0.50% expected
• (AUD) Westpac Consumer Sentiment 4.50% vs -5.50% previous
• (EUR) German ZEW Economic Sentiment -2.1 vs -13.2 expected
• (GBP) Average Earnings Index 3m/y 3.60% vs 3.80% expected
• China to roll out digital Yuan ‘in 2-3 months’
• Surprise China sovereign Euro bond issue nets EUR4 billion

Markets Update:

Asian stock markets are in negative territory on Wednesday after a speech by U.S. President Donald Trump at the Economic Club of New York failed to provide any new information about the state of trade talks between the U.S. and China.

Trump claimed the Chinese are “dying to make a deal” and an agreement is “close”, but also threatened further increases in tariffs if a trade deal is not reached. In addition, worries about the growing unrest in Hong Kong weighed on the markets.

Mainland Chinese stocks were mixed, with the Shanghai composite down 0.4% and the Shenzhen component down 0.2%. Hong Kong’s Hang Seng index led losses in the region as it fell 2.1% with shares of life insurer AIA plunging more than 3.5%. Japan’s Nikkei 225 declined 0.9% in afternoon trade as shares of index heavyweight Fast Retailing fell 1.9%.Shares in Korea also saw declines, as the Kospi slipped 0.9%. Australia’s S&P/ASX 200 shed 0.8% as the heavily-weighted financial subindex fell around 1%.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 98.327 after touching highs around 98.4 yesterday. The yield on benchmark 10-year Treasury notes rose slightly to 1.9260% but is likely to move in a narrow range before data due later Wednesday that is forecast to show U.S. consumer prices accelerated slightly in October.

Upcoming Events:

• 09:30 AM GMT – (GBP) CPI y/y
• 01:30 PM GMT – (USD) CPI m/m
• 01:30 PM GMT – (USD) Core CPI m/m
• 04:00 PM GMT – (USD) Fed Chair Powell Testifies
• 07:10 PM GMT – (NZD) RBNZ Gov Orr Speaks
• 10:50 PM GMT – (AUD) RBA Assist Gov Bullock Speaks
• &more…