Wednesday 25th November: Asian markets gain as Dow closes at record highs

Global Markets:

• Asian Stock Markets : Nikkei up 0.50%, Shanghai Composite down 1.19%, Hang Seng up 0.19%, ASX up 0.59%
• Commodities : Gold at $1805.30 (+0.04%), Silver at $23.25 (-0.24%), Brent Oil at $48.23 (+0.94%), WTI Oil at $45.26 (+0.78%)
• Rates : US 10-year yield at 0.875, UK 10-year yield at 0.323, Germany 10-year yield at -0.563

News & Data:

• (JPY) BOJ Core CPI y/y 0.00% vs -0.10% expected
• (AUD) Construction Work Done q/q -2.60% vs -2.00% expected
• (JPY) SPPI y/y -0.60% vs -0.50% expected
• (USD) CB Consumer Confidence 96.1 vs 97.7 expected
• (USD) Richmond Manufacturing Index 15 vs 20 expected
• (USD) S&P/CS Composite-20 HPI y/y 6.60% vs 5.30% expected
• (USD) HPI m/m 1.70% vs 0.80% expected
• (GBP) CBI Realized Sales -25 vs -34 expected
• (EUR) German ifo Business Climate 90.7 vs 90.3 expected
• Japan Kato: Received Courtesy Call From Chinese Foreign Minister Wang
• China ready to boost COVID-19 vaccine cooperation with Germany: Xi

Markets Update:

Asian stock markets are in positive territory on Wednesday day following the record closing highs overnight on Wall Street as news about U.S. President-elect Joe Biden’s transition to the White House and continued optimism about coronavirus vaccines boosted risk appetite.

In China, the Shanghai composite dipped 1.2% while the Shenzhen component shed 1.8%. In Japan, the Nikkei 225 rose 0.5% while the Topix index gained 0.3%. The Hang Seng index in Hong Kong also advanced 0.2%. The Australian market is rising for a third straight day following the gains on Wall Street. The easing of virus-induced travel restrictions in Australia also buoyed sentiment.

U.S. Treasuries were also pressured by expectations that Yellen’s nomination as Treasury Secretary could ease the passage of a fiscal stimulus package, which would mean more debt. Oil prices also held near highest levels since March on the improved global economic outlook.

Upcoming Events:

• 09:00 AM GMT – (EUR) ECB Financial Stability Review
• 01:30 PM GMT – (USD) Prelim GDP q/q
• 01:30 PM GMT – (USD) Unemployment Claims
• 03:00 PM GMT – (USD) Revised UoM Consumer Sentiment
• Tentative – (GBP) Autumn Forecast Statement
• 07:00 PM GMT – (USD) FOMC Meeting Minutes