Global Markets:
- Asian Stock Markets : Nikkei down 0.51%, Shanghai Composite down 0.30%, Hang Seng down 1.03% ASX down 0.02%
- Commodities : Gold at $2554.35 (0.19%), Silver at $29.59 (0.21%), Brent Oil at $77.18 (-0.09%), WTI Oil at $73.02 (-0.12%)
- Rates : US 10-year yield at 3.808, UK 10-year yield at 3.918, Germany 10-year yield at 2.205
News & Data:
- (CAD) CPI m/m 0.4% vs 0.4% expected
- (CAD) Median CPI y/y 2.4% vs 2.5% expected
- (CAD) Trimmed CPI y/y 2.7% vs 2.8% expected
- (CAD) Common CPI y/y 2.2% vs 2.2% expected
Markets Update:
.Asia-Pacific markets mostly declined on Wednesday, following a downturn in U.S. benchmark indexes, with the S&P 500 and Nasdaq Composite ending their eight-day winning streak. Japan’s trade data for July showed a 10.3% increase in exports and a 16.6% rise in imports year-on-year. However, these figures were below economists’ expectations, leading to a trade deficit of 621.84 billion yen ($4.28 billion), significantly higher than the anticipated 330.7 billion yen.
This latest trade data comes just before the Bank of Japan’s recent interest rate hike, which has strengthened the yen. Typically, a weaker yen benefits Japanese exporters and trading houses, both of which are major players on the Nikkei 225. However, after the release of the data, Japan’s Nikkei 225 slipped 0.5%, while the broader Topix index fell 0.23%.
Elsewhere in Asia, Hong Kong’s Hang Seng index dropped 0.93%, and mainland China’s CSI 300 fell 0.19%. The Hang Seng was particularly dragged down by technology and consumer cyclical stocks, with JD.com leading the declines, plunging 11.4% after Walmart announced plans to sell its stake in the Chinese e-commerce giant, reportedly valued at $3.74 billion.
South Korea’s Kospi was the exception, reversing earlier losses to climb 0.26%, making it the only major index in positive territory, although the small-cap Kosdaq dropped 0.91%. Australia’s S&P/ASX 200 also experienced a slight decline. Meanwhile, in the U.S., the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posted modest losses overnight.
Upcoming Events:
- 12:30 PM GMT – CAD IPPI m/m
- 12:30 PM GMT – CAD RMPI m/m
- 02:30 PM GMT – USD Crude Oil Inventories
