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Markets Update: Asian equities build on yesterday’s gains on quiet day ahead of data later in week; Japan unemployment climbs; Chevron LNG facility strike in AU looks likely; US JOLTS jobs tonight;
Economic Calendar
Global Markets Roundup: 29 Aug 2023
APAC stocks traded higher on Tuesday, following the positive lead from Wall Street. There were few fresh catalysts to drive price action, with markets looking ahead to the end of the month. The Nikkei 225 index in Japan rose 1.2%, the Hang Seng index in Hong Kong gained 1.5%, and the Shanghai Composite index in China rose 1.7%.
The US dollar index (DXY) was subdued after retreating back under the 104.00 mark in early APAC hours.The dollar was weighed down by the weaker euro, as well as the positive sentiment in APAC markets.
Debt futures tilted firmer, with US 10-year Treasury futures rising 2 basis points. The move higher in debt futures was attributed to the weaker dollar and the lack of fresh catalysts.
Chinese state media reported that the People's Bank of China (PBoC) may cut banks' reserve requirement ratio (RRR) earlier than expected to maintain reasonable ample liquidity.
The RRR is a measure of the amount of money that banks must hold in reserve with the PBoC. A cut in the RRR would free up more money for banks to lend, which could boost economic growth.
An Australian union said that workers at Chevron's LNG facilities will escalate industrial action each week until the company agrees to their bargaining claims. The industrial action could disrupt LNG exports from Australia, which is a major supplier of LNG to Asia.
The US dollar index (DXY) was subdued after a retreat back under the 104.00 mark in early APAC hours. The euro (EUR) drifted further above the 1.0800 mark before encountering some resistance. The pound (GBP) found a footing above 1.2600. The Japanese yen (JPY) remained caged within yesterday's range. The Australian dollar (AUD) and New Zealand dollar (NZD) drifted higher.
Commodities
Oil prices traded sideways following a choppy Monday.
Spot gold remained supported above USD 1,920/oz.
Copper futures held a mild upward bias.
The Australian union representing workers at Chevron's LNG facilities said that industrial action will escalate each week until Chevron agrees to bargaining claims.
The US National Hurricane Center (NHC) said that rapid strengthening in Tropical Storm Idalia is expected in the next day or so.
Chilean copper miner Codelco made further staff cuts.
The Australian agriculture minister said that the first shipment of Australian barley has been dispatched to China.
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General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team