In Asian Equity Markets stocks were on edge on Wednesday as worries about soaring power prices fuelling inflation weighed on sentiment and drove expectations the United States would taper its emergency bond buying programme, holding the dollar at a one-year high. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1 percent in early trading. Moves were muted in most markets. Chinese blue chips were flat, Australia eeked out a 0.06 percent gain, while Japan’s Nikkei shed 0.2 percent. Hong Kong’s stock market was closed in the morning because of a typhoon.
In Currency Markets the dollar eased back from a one-year high versus major peers on Wednesday ahead of U.S. consumer price data that could provide additional clues on when the Federal Reserve will taper stimulus and raise interest rates. The dollar index fell 0.18 percent to 94.358 from Tuesday. The U.S. currency weakened 0.13 percent to 113.465 yen. The euro climbed 0.18 percent to $1.1551, off Tuesday’s $1.1522, its lowest in nearly 15 months. The Aussie dollar fell 0.19 percent to $0.73375, retreating from Tuesday’s one-month high at $0.7384.
In US Equity Markets stocks finished lower on Tuesday, extending losses late as investors grew more jittery in the run up to third-quarter earnings, while a jump in Tesla shares helped support the market. The Dow fell 0.34 percent, to 34,378.34, the S&P 500 lost 0.24 percent, to 4,350.65 and the Nasdaq Composite fell 0.14 percent, to 14,465.93. Shares of American Airlines Group rose 0.8 percent after the company estimated a smaller-than-expected adjusted loss for the third quarter and signaled improved bookings for the rest of the year.
In Commodities Markets oil prices were mostly steady on Tuesday. U.S. crude was little changed at $80.50 per barrel, while Brent crude rose above $84 a barrel briefly before shedding 0.5 percent at $83.27. Gold prices rose on Tuesday, as rising inflation fears dulled risk appetite and boosted demand for the safe-haven metal, although an advancing U.S. dollar limited bullion’s gains. Spot gold rose 0.3 percent to $1,759.31 per ounce. Spot silver fell 0.2 percent to $22.52 per ounce and platinum was 0.1 percent higher at $1,009.37. Palladium slid 2.5 percent to $2,058.71.
In European Equity Markets stocks fell on Tuesday as investors feared that soaring commodity prices would hamper a recovery in corporate profit. The pan-European STOXX 600 index was down 0.1 percent, hovering about 4 percent below its August peak. Germany’s DAX extended losses to a third straight session, down 0.3 percent. Airbus fell 0.5 percent as the world’s largest planemaker’s deliveries were flat in September versus the previous month. Low-cost airline EasyJet fell 3.5 percent after it estimated a loss of above 1 billion pounds for the 12 months ended September.
In Bond Markets yields on the U.S. two-year Treasury note jumped to their highest level in more than 18 months on Tuesday, on concerns rising inflation may force the U.S. Federal Reserve to take action earlier than currently anticipated with a key report on consumer prices on Wednesday in focus. The yield on the 2-year was up 3.2 basis points to 0.350 percent after reaching as high as 0.36 percent, its highest level since March 25, 2020. The yield on 10-year Treasury notes was down 2.1 basis points to 1.584 percent. The yield on the 30-year Treasury bond was down 5.2 basis points to 2.108 percent.