In Asia stocks were flat on Wednesday, as weak Chinese export data offset a brightening energy sector outlook and an expected delay in interest rate hikes by the U.S. Federal Reserve. The Nikkei ended down 0.4% to 16,611.45.
The USD/JPY fell 0.3% to 107.05 yen. The EUR/USD rose 0.2% to $1.1373, while the sterling was steady at $1.4551. The AUD/USD dollar edged up 0.1% to $0.7462.
Oil prices rose helped by industry data showing a larger-than-expected drawdown in U.S. crude inventories, worries about attacks on Nigeria’s oil industry and strong Chinese demand. London Brent crude for August delivery was up 9 cents at $51.53 a barrel, after settling up 89 cents on Tuesday. NYMEX crude for July delivery was up 17 cents at $50.53 a barrel, after touching $50.58 earlier. U.S. commercial crude inventories fell by 3.6 million barrels last week, data from industry group the API showed on Tuesday after the market settlement.
In US markets the S&P 500 ended higher helped by a big jump in energy stocks and investor confidence that higher interest rates will not derail the economy. The S&P 500 gained 0.13%, to 2,112.13. Navistar International (NYSE:NAV) rose 19.6% after it posted a surprise second-quarter profit. Biogen (NASDAQ:BIIB) fell 12.8% after its multiple sclerosis drug failed in a mid-stage study. Alexion (NASDAQ:ALXN) fell 10.9% after its drug failed a trial, while Valeant (NYSE:VRX) lost 14.6% after the drugmaker cut its full-year forecast.
In Bond Markets U.S. Treasury prices rose on Tuesday, boosted by expectations that the Federal Reserve will not raise interest rates for several months, but briefly pared gains after government had to pay more to sell new three-year notes. Benchmark 10-year notes gained 3/32 in price to yield 1.713 percent, down from 1.723 percent late on Monday. The 20-year Japanese government bond yield fell to a record low on Wednesday, as investor demand for super long maturities remained intact following the previous day’s strong 30-year debt sale. The 20-year yield touched a record low of 0.215 percent.
Economic Calendar
09:30 GMT+1 UK Manufacturing Production m/m
15:30 GMT+1 US Crude Oil Inventories
22:00 GMT+1 NZD Official Cash Rate
22:00 GMT+1 NZD RBNZ Rate Statement
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