In Asian Equity Markets stocks moved little on Thursday as a rally in heavyweight Chinese technology stocks ran out of steam, while markets turned cautious in anticipation of key U.S. inflation data that is expected to show that price pressures eased. China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose slightly, while Hong Kong’s Hang Seng index added 0.2 percent as a two-day rally in heavyweight technology stocks wound down. Australia’s ASX 200 index rose 1.2 percent, while Japan’s Nikkei 225 index traded sideways.
In Currency Markets the yen got a boost on Thursday on expectations that the Bank of Japan will review the side effects of its monetary easing, while the dollar fell and wobbled near a seven-month low against the euro ahead of U.S. inflation data later in the day. The Japanese yen rose roughly 0.8 percent to a session high of 131.385 per dollar in Asia trade. Sterling gained 0.15 percent to $1.2169, while the euro was last 0.11 percent higher at $1.0769, after rising to a seven-month peak of $1.07765 in the previous session. The U.S. dollar index fell 0.07 percent to 103.05.
In US Equity Markets stocks rose on Wednesday, with the S&P 500 and Nasdaq gaining more than 1 percent each as investors were optimistic ahead of an inflation report that could give the Federal Reserve room to dial back on its aggressive interest rate hikes. The Dow rose 0.8 percent, to 33,973.01, the S&P 500 gained 1.28 percent, to 3,969.61 and the Nasdaq Composite added 1.76 percent, to 10,931.67. Retailer Bed Bath & Beyond Inc sharply extended recent gains to end up 68.6 percent despite bleak quarterly results, with some investors speculating it could be a potential acquisition target.
In Commodities Markets oil prices rose 3 percent to a one-week high on Wednesday as hopes for an improved global economic outlook and concern over the impact of sanctions on Russian crude output outweighed a massive surprise build in U.S. crude stocks. Brent futures rose 3.2 percent, to settle at $82.67 a barrel. U.S. West Texas Intermediate (WTI) crude rose 3.1 percent, to settle at $77.41. Spot gold was steady at $1,877.51 per ounce. Spot silver fell 0.9 percent to $23.40 per ounce, platinum was down 0.5 percent to $1,075.63 while palladium was unchanged at $1,780.66.
In European Equity Markets stocks advanced on Wednesday, buoyed by hopes of less aggressive interest rate hikes, while insurer Direct Line fell sharply after scrapping its full-year dividend. The pan-regional STOXX 600 climbed 0.4 percent, with market participants awaiting U.S. inflation data on Thursday for clues on the Federal Reserve’s interest rate policy. LVMH gained 2.1 percent after Chairman and Chief Executive Bernard Arnault tightened his family’s grip on the luxury goods empire, putting his daughter Delphine in charge of one of its leading labels, Christian Dior.
In Bond Markets Treasury yields fell on Wednesday, a day before the release of key consumer price data, with the market anticipating that inflation is on a sustainable downward path and the Federal Reserve will cut interest rates by year end. The yield on benchmark 10-year Treasury notes fell 5.9 basis points to 3.560 percent. The two-year yield, which often reflects interest rate expectations, slid 2.1 basis points at 4.237 percent, while yield on the 30-year bonds fell 6.7 basis points to 3.687 percent.