In Asian Equity Markets Japan’s Nikkei index edged down in choppy trade on Wednesday morning as stocks tracked the volatile currency market, while the glass manufacturing sector outperformed on brisk earnings results. The Nikkei fell 0.1 percent to 18,892.69, having dabbled in positive territory earlier in the trading session. The broader Topix was flat at 1,516.76 and the JPX-Nikkei Index 400 gained 0.1 percent to 13,607.61. MSCI’s broadest index of Asia-Pacific stocks outside Japan ticked down 0.3 percent, falling further from Monday’s four-month high, led by 0.9 percent fall in South Korean stocks. The Shanghai composite eased 0.37 percent and the Shenzhen composite fell 0.29 percent.

In Currency Markets the euro nursed losses in Asian trading on Wednesday, pressured by political woes in Europe ahead of elections that checked its recent ascent against the dollar. The euro was slightly lower on the day against the dollar at $1.0681 after falling as low as $1.0656 on Tuesday. Against the yen, the euro fell 0.2 percent to 119.86. The U.S. currency traded at 112.35 yen, having fallen to 111.59 yen on Tuesday, its lowest since late November. The Australian dollar traded at $0.7631, up 0.05 percent. The yuan was little changed after falling to one-week low of 6.847 per dollar in offshore trade and three-week low of 6.8916 in the onshore trade. The dollar index was flat at 100.39.

In Commodities Markets oil prices fell on Wednesday to extend falls from the previous day, as a massive increase in U.S. fuel inventories and a fall in Chinese demand implied that global crude markets remain oversupplied despite OPEC-led efforts to cut output. International Brent crude futures were trading at 54.54 per barrel, down 0.9 percent, from their previous close. U.S. West Texas Intermediate crude was at $51.52 a barrel, down 1.3 percent. The sharp declines came on the back of unexpectedly big increases in U.S. fuel inventories, as reported by the American Petroleum Institute (API) on Tuesday. Spot gold had edged up 0.1 percent to $1,234.20 per ounce and spot silver fell 0.1 percent to $17.69.

In US Equity Markets the S&P 500 ended barely higher on Tuesday while the Nasdaq managed to scratch out a new record as gains in big tech names countered energy declines. The Dow Jones Industrial Average rose 0.19 percent, to 20,090.29, the S&P 500 gained 0.02 percent, to 2,293.08 and the Nasdaq Composite added 0.19 percent, to 5,674.22. Emerson Electric shares rose 4.5 percent after the manufacturer reported a higher-than-expected profit. General Motors fell 4.7 percent after the automaker said that fourth-quarter net income fell partly on the strength of the dollar against the British pound and forecast flat 2017 profit per share. After the market closed, Walt Disney shares fell following the company’s quarterly report.

In Bond Markets superlong Japanese government bonds edged down on Wednesday, with the 30- and 40-year yields touching one-year highs, as investors positioned for the following day’s 30-year sale. The benchmark 10-year JGB yield was flat at 0.095 percent, while 10-year JGB futures finished up 0.06 point at 149.72. The 30-year yield rose 1 basis point to 0.910 percent and the 40-year yield also added 1 basis point to 1.065 percent, their highest respective levels since February 2016. The 20-year yield was flat at 0.715 percent, not far from last week’s high of 0.730 percent.

Economic Calendar
16:30 GMT+0 US Crude Oil Inventories
21:00 GMT+0 NZD Official Cash Rate
21:00 GMT+0 NZD RBNZ Rate Statement
22:00 GMT+0 NZD RBNZ Press Conference