Asian stock market calm in anticipation of macro data
2023.02.07 03:24
Asian stock market calm in anticipation of macro data
By Kristina Sobol
Budrigannews.com – The U.S. dollar remained elevated on Tuesday as investors considered the prospects for interest rates to remain higher for a longer period of time in many developed economies. On Tuesday, Asian share markets mostly stabilized following steep losses in the previous 24 hours.
After U.S. stocks closed the previous session with slight losses, MSCI’s broadest index of Asia-Pacific shares outside of Japan was up 0.4 percent.
The official cash rate was increased by 25 basis points, but Australia’s S&P/ASX200 was trading higher before the Reserve Bank’s decision. The benchmark index ended the day nearly 0.5% lower.
The stock index also lost some of its initial gains, falling about 1%.
The CSI300 Index, a blue-chip index in China, was up 0.07%, while Hong Kong’s was up 0.67 percent.
With its ninth rate increase in a row, the RBA met expectations of extending its monetary tightening campaign.
The Australian central bank stated that further rate increases could not be ruled out, and the cash rate is currently at 3.35 percent, the highest level in a decade.
Pan-region was up 0.17 percent at 4,215, German was up 0.09 percent at 15,409, and futures were up 0.09 percent at 7,815.
The futures for U.S. stock were up 0.13 percent at 4,128.8.
Kerry Craig, JPMorgan (NYSE:), asserts, “Central banks and the repricing of rates yet again are dominated by sentiment in markets.” Reuters was informed by Asset Management’s global market strategist.
“Seeing an air pocket emerge now is not a big surprise given that stocks have had a strong run since the beginning of the year.
“Investors’ predominant theme is uncertainty over interest rates when it’s a quiet week for economic data globally.”
The benchmark yield reached 3.6192% during the Asian trading session, compared to its close of 3.632% on Monday in the United States.
With traders anticipating higher Fed fund rates, the two-year yield reached 4.4267 percent, compared to 4.456% at the close in the United States.
After strong job growth in the United States in January, when employment rose by 517,000, more than double economists’ expectations, the repricing of higher rates began. The lowest unemployment rate in more than 53 years was 3.4%.
The speech that Federal Reserve Chairman Jerome Powell will give later on Tuesday at the Economic Club of Washington will be closely watched by investors.
On Wall Street overnight, the lost 0.1%, 0.61 percent, and 1%, respectively.
According to an article published by ANZ economists, “The market has repriced to expect that the Fed Funds rate will peak just above 5% and it now only anticipates very limited rate cuts, just one of 25 basis points by the end of this year.”
“It’s very clear that sentiment is fragile and dependent on data, and this new defensive position may need more time to run in the near term as risk positions are reduced,”
After reaching a three-week high of 132.9 during the U.S. trading session, the dollar lost 0.28 percent against the yen to reach 132.28.
After losing 1.13 percent in a month, the European single currency was up 0.1 percent on the day to $1.0739.
The, which compares the dollar to a basket of major trading partner currencies, was slightly lower than its U.S. trading levels at 103.45. However, it is still well above its February 3 low of 101.55.
Climbed 0.86 percent to $74.75 a barrel. climbed to $81.6 a barrel.
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