In Asian Equity Markets stocks hovered just off six-week highs on Wednesday, as a more risk-averse mood spread into the market from the United States overnight due to worries about slowing growth that hurt equities while helping the dollar firm. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.13 percent. Japan’s Nikkei was last 0.42 percent higher after revised gross domestic product growth figures beat expectations for the world’s third-biggest economy. Australia lost 0.32 percent, Chinese blue chips fell 0.04 percent, and the Hong Kong benchmark gained 0.12 percent.
In Currency Markets the dollar rose to a one-week peak against major peers on Wednesday, buoyed by higher Treasury yields and a weaker euro ahead of a European Central Bank policy decision. The dollar index ticked up 0.05 percent to 92.580, after earlier touching 92.590, a level not seen since Sept. 1. The euro fell 0.05 percent to $1.1836 for the first time since Sept. 2. The greenback gained 0.08 percent to 110.385 yen, helped by higher U.S. yields. The Aussie dollar fell 0.07 percent to $0.73825 on Wednesday, extending the previous session’s 0.7 percent slide.
In US Equity Markets the S&P 500 closed lower on Tuesday while the Nasdaq reached a record high, as investors balanced worries about the slowing pace of economic recovery with expectations that the Federal Reserve will maintain its accommodative monetary policy. The Dow fell 0.75 percent to end at 35,104.56 points, while the S&P 500 lost 0.33 percent to 4,520.26. The Nasdaq Composite climbed 0.07 percent to 15,374.08. Boeing Co fell after Ireland’s Ryanair said it had ended talks with the planemaker over a purchase of 737 MAX 10 jets worth tens of billions of dollars due to differences over price.
In Commodities Markets oil prices slid on Tuesday on concerns over weak demand in the United States and Asia. Saudi Arabia’s sharp cuts to crude contract prices for Asia had earlier revived demand concerns. U.S. West Texas Intermediate crude settled down 1.4 percent from Friday’s close at $68.35 a barrel. Brent crude futures settled down 0.7 percent, a $71.69 a barrel, after falling 39 cents on Monday. Spot gold fell 1.6 percent to $1,794.57 per ounce. Silver slid 1.4 percent to $24.32 per ounce, platinum fell 2.2 percent to $996.48. Palladium lost 1.5 percent to $2,373.68.
In European Equity Markets stocks ended lower on Tuesday as caution kicked in ahead of a European Central Bank meeting later this week, while focus turned to a flurry of telecom deals led by Deutsche Telekom. The pan-European STOXX 600 index lost 0.5 percent after coming close to a record high in the previous session. Utilities, healthcare and chemical stocks were among the top decliners. Spurring moves in telecoms, Deutsche Telekom struck a share-swap deal with SoftBank Group to increase its stake in U.S. unit T-Mobile.
In Bond Markets U.S. government bond yields rose for a second straight day on Tuesday, building on Friday’s climb in the wake of the government’s jobs report and ahead of this week’s host of scheduled Treasury auctions. The yield on 10-year Treasury notes was up 4.8 basis points at 1.370 percent after touching 1.385 percent shortly after the three-month and six-month auctions, its highest since July 14. The yield on 8-week bills was down 0.3 basis points at 0.071 percent after reaching 0.081 percent, the highest since March 15. Germany’s 10-year yield hit its highest level since mid-July.