FX Careers

US Session – Asia Pacific Markets Plunge as US Yeilds Surg

Global Markets:

  •  Asian Stock Markets : Nikkei down 1.86%, Shanghai Composite down 1.58, Hang Seng down 2.58% ASX down 1.36%
  • Commodities : Gold at $1959.05 (-0.52%), Silver at $23.067 (-0.29%), Brent Oil at $91.66 (-0.39%), WTI Oil at $87.16 (-0.07%)
  • Rates : US 10-year yield at 4.968, UK 10-year yield at 4.709, Germany 10-year yield at 2.949

News & Data:

  • (CAD) Housing Starts 270K vs 241K expected
  • (USD) Housing Starts 1.36M vs 1.39M expected
  • (USD) Building Permits 1.47M vs 1.45M expected

Markets Update:

The Asia-Pacific markets witnessed a widespread sell-off, with South Korea and Hong Kong each reporting losses of around 2%. This decline closely reflected Wall Street’s performance, where U.S. Treasury yields surged to levels not seen in years, with the 10-year Treasury yield surpassing 4.9% for the first time since 2007. Additionally, the 30-year fixed mortgage rate reached a peak of 8%, marking its highest point since 2000.

Japan reported a trade surplus of 62.4 billion yen ($416.6 million) for September, surpassing expectations, while Australia’s unemployment rate decreased to 3.6% in the previous month.

In terms of market performance, Australia’s S&P/ASX 200 experienced a 1.36% decline, erasing gains achieved earlier in the week. Hong Kong’s Hang Seng index led the losses across Asia with a 2.58% drop, and China’s CSI 300 index fell by 1.62%. Japan’s Nikkei 225 fell by 1.86%, with a milder 1.12% decline for the Topix following the release of trade data. South Korea’s Kospi decreased by 1.81%, and the Kosdaq plunged by 2.97% as the Bank of Korea maintained a steady interest rate of 3.5% for the sixth consecutive time.

In the United States, on the preceding Wednesday, all three major stock indexes reported declines. The Dow Jones Industrial Average fell by 0.98%, equivalent to a drop of over 300 points. The S&P 500 experienced a 1.34% decline, while the Nasdaq Composite recorded a decrease of 1.62%.

Overall, the global financial landscape is characterized by increased market volatility, driven by rising U.S. Treasury yields, trade data in Asia, and the policy decisions of central banks in response to economic uncertainties.

Upcoming Events:

  • 12:30 PM GMT – USD Unemployment Claims
  • 2:00 PM GMT – USD Existing Home Sales
  • 2:00 PM GMT – USD CB Leading Index m/m
  • 2:30 PM GMT – USD Natural Gas Storage
  • 4:00 PM GMT – USD Fed Chair Powell Speaks