Asia Market News
In Asia stocks were slightly weaker but recovered from near three-week lows on Wednesday as markets digested U.S. index provider MSCI’s decision not to include domestic Chinese equities in its indexes and Brexit fears drove investors to assets such as U.S. bonds and the yen. Japan’s Nikkei reversed earlier losses to rise 0.7%. China’s CSI 300 index and the Shanghai Composite staged a turnaround from earlier declines to rise 0.4% and 0.6% respectively. Hong Kong’s Hang Seng index fell 0.1%.
Currency Market News
The benchmark German government bond yield turned negative for the first time due to worries that Britain might vote next week to leave the European Union, while investors stayed cautions ahead of a Federal Reserve’s policy decision later in the global day. The EUR/USD was flat at $1.1201 after falling 0.8 percent overnight to an 11-day low of $1.1189. The USD/JPY was higher 0.2% to 106.260 yen, having bounced from an overnight low of 105.630 thanks to Tuesday’s upbeat May U.S. retail sales data. GBP/USD traded at $1.4120 after recovering slightly from a two-month low of $1.4091.
Commodity Market News
Crude futures fell on Wednesday as concerns about Britain’s possible exit from the European Union and a surprise build in U.S. inventories left investors ignoring an IEA declaration that oil markets are now in balance. U.S. crude fell to $47.55. Brent was down for a fifth day to hit its lowest in around two weeks. The global benchmark was 71 cents lower at $49.12 a barrel. Data from the API showed U.S. crude inventories rose by 1.2 million barrels in the week to June 10 to 536.7 million, compared with analyst expectations for a decrease of 2.3 million barrels. Spot gold was down 0.1% at $1,284.40 an ounce.
US Market News
In US, stocks fell as central bank policymakers weighed the health of the U.S. economy and investors worried about an upcoming vote in Britain on whether to leave the European Union. The S&P 500 lost 0.18% to 2,075.32. Wells Fargo (NYSE:WFC) declined 2.27% and JPMorgan Chase (NYSE:JPM) lost 1.88%. The CBOE Volatility index reached its highest in over three months.
Bond Market News
In Bond Markets the yields on benchmark and superlong Japanese government bonds fell to record lows on Wednesday, as risk-averse investors continued to seek the perceived safety of sovereign debt. The 10-year JGB yield skidded 1 basis point to minus 0.180 percent. The 20-year yield fell 1 basis point to 0.150 percent, while the 30-year yield fell 1 basis point to 0.220 percent. The 10-year U.S. debt yield fell to a four-month low of 1.567 percent on Tuesday and last stood at 1.6113 percent.
Economic Calendar
- 09:30 GMT+1 UK Average Earnings Index 3m/y
- 09:30 GMT+1 UK Claimant Count Change
- 13:30 GMT+1 CAD Manufacturing Sales m/m
- 13:30 GMT+1 US PPI m/m
- 15:30 GMT+1 US Crude Oil Inventories
- 19:00 GMT+1 US FOMC Economic Projections
- 19:00 GMT+1 US FOMC Statement
- 19:00 GMT+1 US Federal Funds Rate
- 19:30 GMT+1 US FOMC Press Conference
- 23:45 GMT+1 NZD GDP q/q
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