By City A.M. Reporter
Global stocks were mixed as investors awaited a crucial U.S. inflation reading. Oil prices edged up after OPEC highlighted strong market fundamentals. The Japanese yen hovered near a three-decade low against the dollar. Beyond U.S. CPI inflation, euro zone Q3 GDP, and UK employment is also in focus. Five key takeaways to kick off your day.
Oil gains as OPEC upgrades 2023 demand outlook
Oil prices rose on Tuesday following an OPEC report citing robust market fundamentals. Brent crude futures increased 0.4% to $82.85 a barrel, and U.S. WTI crude futures rose 0.4% to $78.59 a barrel. In its monthly report, OPEC attributed a recent price drop to speculators and slightly raised its 2023 global oil demand forecast while maintaining a relatively high 2024 prediction.
Yen nears three-decade low, raising intervention risk
The yen traded close to a three-decade low against the U.S. dollar on Tuesday. It also hit a 15-year low of 162.38 against the euro and a three-month low of 186.25 against the British pound. Against the dollar, the yen stood at 151.72, close to the one-year low of 151.92 on Monday. A drop below last year’s low of 151.94 per dollar would mark a new 33-year low for the yen.
Japan’s Finance Minister Shunichi Suzuki said the government is ready to take necessary steps to address currency volatility.
China October new bank loans fall, policy easing looms
China’s new bank lending in October decreased less than expected, despite economic stabilization measures by the central bank, including cuts to banks’ reserve requirement ratios. Chinese banks issued 738.4 billion yuan in new yuan loans, down from 2.31 trillion yuan in September. Several economists expect another interestrate cut in the coming weeks.
U.S. CPI, Eurozone GDP and UK employment data take centre stage
Investors closely watch the U.S. inflation report, anticipating a slowdown in headline U.S. consumer price inflation to 3.3% in October. U.S. core inflation is expected to remain unchanged at 4.1%. Prior to the U.S. CPI release, Eurozone Q3 GDP and UK employment data are awaited, with a 0.1% contraction projected for EU GDP. The UK unemployment rate is forecast to hold at 4.2% for September, with the claimant count change in October at 15K. Attention is also onUK wage growth data.
Global stocks mixed
The Dow Jones Industrial Average rose 0.16% to 34,337.87, while the S&P 500 fell 0.08% to 4,411.55, and the Nasdaq Composite dropped 0.22% to 13,767.74. Asian markets saw slight gains, with Tokyo’s Nikkei up 0.36%, Australia’s S&P/ASX 200 index rising 0.61%, and China’s CSI 300 Index gaining 0.40%.
Hong Kong’s Hang Seng Index increased by 0.57% ahead of a summit between the leaders of the world’s two largest economies. The 10-year Treasury yields rose by 2.2 basis points to 4.654%, and the dollar index increased by 0.057% to 105.69. Spot gold traded flat around $1,945 per ounce.
