A strong rebound for Asian equity markets

Wednesday, September 09, 2015

Asian equity markets posted strong gains overnight, as risk appetite increased and market sentiment generally improved. The Shanghai Composite index gained over 2.2% towards 3243, while the Hang Seng index rallied strongly over 900 points (+4.25%) towards 22,150. In Japan, the Nikkei index rebounded from recent losses and spiked over 7.7% (1340 points) towards 18,800, showing its biggest one-day gain since 2008. Japan’s consumer confidence increased to 41.7 in August from 40.3 in July, beating expectations of 40.5.

Nikkei index over 2 years

NKY Index (Nikkei 225)  Weekly 0 2015-09-09 08-52-21

It is a big day for the G10 FX as the main focus will turn to Bank of Canada and RBNZ meetings.  The Bank of Canada has revealed signs of a possible cut of interest rates at MPR meetings earlier this year. The USD index has been hovering around 96.0 against a basket of currencies, while gold and silver slid slightly lower in early trade this morning.   

The UK BRC retail price index declined 1.4% m/m in August, missing analysts’ expectations of a 0.2% drop. Market participants will be keeping an eye on the release of UK’s industrial and manufacturing production as well as trade balance for July and NIESR GDP estimate in August. Sterling has rallied strongly over the last two trading session, climbing from a recent low of 1.5160 towards 1.5420. This morning, GBPUSD has been hovering around 1.54 as investors await key economic data. The London equity benchmark index extended gains in early trade and gained over 1.5% towards 6,250.

GBPUSD rallies to retest 1.54

GBPUSD Curncy (GBP-USD X-RATE)   2015-09-09 08-52-58 

European equity markets extended gains this morning and climbed higher, tracking strong gains across the global equity markets. The DAX, CAC and IBEX rallied strongly over 2% in early trade, verifying the recent strong upside momentum as risk appetite increased. However, the euro remains under pressure after consolidating around 1.1180 against the USD.     

 

Events for today:

0001

UK

Aug

Halifax House Prices

0930

UK

Jul

Trade Balance & Non EU

0930

UK

Jul

Industrial Production

1500

UK

Aug

NIESR GDP Estimate

1530

US

w/e

EIA Energy Stocks

 

All times UK Local Time

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