Global Markets:
- Asian Stock Markets : Nikkei down 0.07%, Shanghai Composite down 0.14%, Hang Seng down 0.82% ASX down 0.31%
- Commodities : Gold at $2669.35 (-0.14%), Silver at $31.04 (-0.58%), Brent Oil at $74.14 (-0.16%), WTI Oil at $70.4 (-0.19%)
- Rates : US 10-year yield at 4.384, UK 10-year yield at 4.410, Germany 10-year yield at 2.247
News & Data:
- (CAD) Manufacturing Sales m/m 2.1% vs 1.2% expected
- (CAD) Wholesale Sales m/m 1.0% vs 0.6% expected
- (USD) Import Prices m/m 0.1% vs -0.2% expected
Markets Update:
Asia-Pacific markets were mostly down on Monday, reversing earlier gains as investors turned their attention to several key central bank decisions this week. These include announcements from the Bank of Japan (BOJ) and the People’s Bank of China (PBOC), alongside the Federal Reserve’s decision on Dec. 18. The CME FedWatch tool forecasts a 96% likelihood of a 25-basis-point rate cut by the Fed.
The BOJ is expected to hold rates during its Thursday announcement, while the PBOC will reveal its loan prime rates on Friday. In China, the one-year LPR influences corporate and household loans, while the five-year LPR is a benchmark for mortgages.
Monday also saw traders digest economic data from China, including November figures for industrial production, retail sales, and home prices. Despite this, Hong Kong’s Hang Seng Index led regional losses, falling 0.7%, while mainland China’s CSI 300 dipped 0.34%. South Korea’s Kospi hovered near the flatline, with the Kosdaq up 0.87%, as the country faced political turbulence following the impeachment of President Yoon Suk Yeol. Japan’s Nikkei 225 rose 0.16%, but the Topix edged slightly lower. Meanwhile, Australia’s S&P/ASX 200 dropped 0.31%.
In the U.S. on Friday, the Dow Jones Industrial Average posted its longest losing streak since 2020, down 0.2%. Conversely, the Nasdaq Composite gained 0.12%, and the S&P 500 remained nearly unchanged, closing at 6,051.09.
Upcoming Events:
- 02:45 PM GMT – USD Flash Manufacturing PMI
- 02:45 PM GMT – USD Flash Services PMI
