Asian equity markets rallied early this morning, continuing the upward momentum on Wall Street, with Japanese and Chinese shares leading the way. Investors had a strong appetite for riskier assets, which helped push U.S. debt yields higher.
Shanghai’s equity market gained 2.6% after President Xi Jinping made positive economic comments and the government unveiled proposals for a five-year financial market reform plan. Hong Kong’s benchmark index, the Hang Seng, jumped by 3.0%. Over in Japan the Nikkei 225 rallied 2.4% after three firms affiliated with Japan Post made strong trading debuts as investors rushed to get a piece of the group’s $12 billion initial public offering.
Investors sold safe-haven assets such as bonds as they looked to move into more riskier assets such as equities, driving U.S. Treasury yields higher, with the benchmark 10-year note yield rising to its 1-1/2-month high of 2.225 percent overnight.
Over in the FX markets, higher U.S. treasury yields supported the US Dollar, which gained 0.1% to 121.16 vs the Yen. In addition the Euro slipped 0.1% to $1.0952 extending overnight trading losses. Comments by European Central Bank President Mario Draghi on Tuesday to the effect that policymakers are willing and able to act on monetary stimulus if needed, this added additional pressure on the Euro, pushing it to 1.0939 this morning. The Dollar index which tracks the U.S. currency against a basket of currencies last stood at 97.342, up about 0.2 percent moving back toward a 2-1/2-month high of 97.818 touched on Oct. 28.
In the commodities sector, oil prices fell in thin trading early this morning as investors took profit from the previous session’s rally, although supply disruptions in Brazil and Libya helped to limit the losses. December Brent futures fell 13 cents to $50.41 at barrel after ending the previous session up $1.75, or 3.6 percent. U.S. December crude delivery also fell 13 cents to $47.77 a barrel, after closing 3.8 percent on Tuesday. In the base metals market London copper rose 1%, rebounding from a one-month low, supported by falling stockpiles and bets that China’s efforts to stimulate its economy will fuel an improvement in demand. This certainly had a knock-on effect on commodity based stocks in the FTSE, seeing some of the mining companies up between 2.95% and 6.59%.
Over in the UK equity market Glencore said it was on track to reduce its debt pile and boost liquidity thanks to asset sales, and plans to deepen copper output cuts to help lift prices. The shares are currently trading at 127p up 6.46%
The British insurer Legal & General’s net cash generation rose 14% to 943 million pounds in the first nine months of 2015 and assets under management rose 8 percent from a year earlier; this helped to add 1.97% to its share price which is changing hands at 266.77.
On the data front today we have global services PMI throughout the morning; later in the trading day we have US ISM non manufacturing PMI data along with the EIA crude oil stock change. Currently the FTSE is trading at 6436 +43 points and the German DAX trading at 10958 +13 points.
Asian equity markets rallied early this morning, continuing the upward momentum on Wall Street, with Japanese and Chinese shares leading the way. Investors had a strong appetite for riskier assets, which helped push U.S. debt yields higher.
Shanghai’s equity market gained 2.6% after President Xi Jinping made positive economic comments and the government unveiled proposals for a five-year financial market reform plan.
Hong Kong’s benchmark index, the Hang Seng, jumped by 3.0%. Over in Japan the Nikkei 225 rallied 2.4% after three firms affiliated with Japan Post made strong trading debuts as investors rushed to get a piece of the group’s $12 billion initial public offering.
Investors sold safe-haven assets such as bonds as they looked to move into more riskier assets such as equities, driving U.S. Treasury yields higher, with the benchmark 10-year note yield rising to its 1-1/2-month high of 2.225 percent overnight.
Over in the FX markets, higher U.S. treasury yields supported the US Dollar, which gained 0.1% to 121.16 vs the Yen. In addition the Euro slipped 0.1% to $1.0952 extending overnight trading losses. Comments by European Central Bank President Mario Draghi on Tuesday to the effect that policymakers are willing and able to act on monetary stimulus if needed, this added additional pressure on the Euro, pushing it to 1.0939 this morning. The Dollar index which tracks the U.S. currency against a basket of currencies last stood at 97.342, up about 0.2 percent moving back toward a 2-1/2-month high of 97.818 touched on Oct. 28.
In the commodities sector, oil prices fell in thin trading early this morning as investors took profit from the previous session’s rally, although supply disruptions in Brazil and Libya helped to limit the losses. December Brent futures fell 13 cents to $50.41 at barrel after ending the previous session up $1.75, or 3.6 percent. U.S. December crude delivery also fell 13 cents to $47.77 a barrel, after closing 3.8 percent on Tuesday.
In the base metals market London copper rose 1%, rebounding from a one-month low, supported by falling stockpiles and bets that China’s efforts to stimulate its economy will fuel an improvement in demand. This certainly had a knock-on effect on commodity based stocks in the FTSE, seeing some of the mining companies up between 2.95% and 6.59%.
Over in the UK equity market Glencore said it was on track to reduce its debt pile and boost liquidity thanks to asset sales, and plans to deepen copper output cuts to help lift prices. The shares are currently trading at 127p up 6.46%
The British insurer Legal & General’s net cash generation rose 14% to 943 million pounds in the first nine months of 2015 and assets under management rose 8 percent from a year earlier; this helped to add 1.97% to its share price which is changing hands at 266.77.
On the data front today we have global services PMI throughout the morning; later in the trading day we have US ISM non manufacturing PMI data along with the EIA crude oil stock change.
Currently the FTSE is trading at 6436 +43 points and the German DAX trading at 10958 +13 points.
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