In Asian Equity Markets stocks recovered slightly from recent losses on Wednesday, while bourses in Taiwan and China remained pressured by a potential standoff between Beijing and Washington. Taiwan’s main stock index and China’s benchmark Shanghai Shenzhen CSI 300 blue-chip index both traded flat, lagging their Asian peers. Bourses in both countries had lost nearly 2 percent each after U.S. House of Representatives Speaker Nancy Pelosi landed in Taipei on Tuesday. Japan’s Nikkei 225 index rose 0.6 percent and Hong Kong’s Hang Seng index rose 0.7 percent on Wednesday.
In Currency Markets the dollar clung on in choppy trade on Wednesday, after its biggest rise for weeks as Federal Reserve officials talked up the potential for further aggressive interest rate hikes. The U.S. dollar index wobbled about 0.3 percent lower by the Asian afternoon to 106.120, amid a hint of relief that House Speaker Nancy Pelosi’s visit to Taiwan brought few surprises. The euro inched 0.2 percent higher to $1.1085, though it remains under pressure, while the yen clawed back a little of its overnight decrease at rose 0.3 percent to 132.71 per dollar. Sterling edged 0.2 percent higher to $1.2180.
In US Equity Markets stocks ended lower after a choppy session on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan. The S&P 500 declined 0.66 percent to end the session at 4,091.32 points. The Nasdaq declined 0.16 percent to 12,348.76 points, while Dow declined 1.23 percent to 32,396.30 points. Shares of U.S. defense companies Raytheon Technologies Corp, Lockheed Martin Corp, Northrop Grumman Corp and L3Harris Technologies Inc rallied for much of the session, ending with gains between 0.5 perccent and 2.3 percent.
In Commodities Markets oil futures edged up less than 1 percent on Tuesday ahead of a meeting of OPEC+ producers this week that may not lead to a further boost in crude supply amid concerns a possible global recession could limit energy demand. Brent futures rose 0.5 percent, to settle at $100.54 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.6 percent, to settle at $94.42. Spot gold was little changed at $1,771.59 per ounce. Spot silver was 1.3 percent lower at $20.07 per ounce. Platinum eased 0.1 percent to $905.97, while palladium fell 5.8 percent to $2,064.68.
In European Equity Markets stocks fell on Tuesday as weak global factory data fanned economic slowdown fears. The pan-European STOXX 600 lost 0.2 percent, a day after declining on concerns about a cooling global economy following disappointing euro zone manufacturing activity data. UK’S FTSE 100 fell the least among European peers thanks to bumper profits from oil giant BP, shares of which firmed 2.8 percent. Semiconductor stocks such as ASML Holding, ASM International and BE Semiconductor fell between 1.2 percent and 2.2 percent.
In Bond Markets U.S. Treasury yields rose across the board on Tuesday in volatile trading, lifted by hawkish comments from Federal Reserve officials that suggested more rate hikes are coming in the near term, as inflation has yet to hit its peak. The U.S. benchmark 10-year yield rallied from a four-month low of 2.516 percent to last trade 13 bps higher at 2.7355 percent. The front end and intermediate part of the curve increased sharply, from anywhere between 16 to 20 basis points. U.S. two-year yields, which reflect rate expectations, rose to one-week highs and were last up 16.6 bps 3.0753 percent.