Global markets:Asian stocks stabilized on Thursday ahead of a real estate policy briefing in China that has raised expectations of support for the ailing real estate sector, while the dollar held near 2-1/2 month highs on the prospect of a US presidency. Donald Trump.
Global bonds rallied after a surprisingly large drop in British inflation and as the European Central Bank is expected to announce its first consecutive rate cut in 13 years.
Results from chipmaker giant TSMC2330.TW will be in the spotlight after a weak outlook from equipment supplier ASMLASML.AS.
Japan Nikkei .N225 rose 0.2 percent in early trading and Australian shares .AXJO rose 1 percent to hit a record high, led by the banking sector which had also performed well on Wall Street.
The US dollar held near more than two-month highs as prediction markets showed Republican Trump leading the US presidential race. US ESc1 futures lurched lower after major US indices closed at or near record levels on Wednesday.
“Probably only in the last two or three days is the concept of a Trump victory gaining ground in the US dollar,” said Damien McColough, head of rates strategy at Westpac, considering Trump’s tariff, tax and immigration policies They are inflationary and negative. for bonds and positive for the dollar.
“There is also the concept of a strong economy and fewer rate cuts by the Federal Reserve, so the two merge,” he said. Trump and the Republicans are also seen applying a softer touch to cryptocurrency regulation. Bitcoin BTC= has rallied in recent sessions.
Bitcoin is up 15 percent in a week to $67,615. Gold XAU= was around $2,677 an ounce, just below record levels.
Chinese markets rose modestly at the open, with the Shanghai Composite .SSEC rising 0.5 percent in early trading, while Hong Kong’s Hang Seng .HSI rose 2 percent.
Sterling Slips
Global economic data on Thursday and Friday are also likely to influence the market. In Asia, the Australian dollar AUD=D3 rebounded from a one-month low after data showed net employment beat forecasts and eased bets on rate cuts. AUD/
The Australian dollar was last up 0.5 percent at $0.6697 and Australian three-year bond futures YTTc1 fell 8 points.
U.S. retail sales data will be released later on Thursday, and China will release third-quarter gross domestic product figures on Friday. On Wednesday, British inflation slowed sharply to an annualized 1.7 percent, bolstering bets that the Bank of England could cut rates twice before Christmas. 0#BOEWATCH
Rates markets have priced in a near 90 percent chance of two 25 basis point rate cuts before the end of the year and the news sent sterling GBP=D3 down 0.6 percent to its lowest level. since August 20 and helped lower state and global bond yields. /GVD/EURUS/
Benchmark 10-year yields in the United States US10YT=RR were steady at 4.03 percent in Asia and two-year yields US2YT=RR were steady at 3.95 percent. The pound was trading at $1.2993, near its overnight low. GBP/
“My guess is that London will probably sell sterling aggressively… when they come in,” Spectra Markets President Brent Donnelly said in a note to clients, as traders digest the widespread slowdown in price pressures.
Elsewhere in currency trading, the euro EUR=EBS was trading at $1.0862 and was near its lowest level since early August and the yen was trading at 149.40 per dollar JPY=EBS.
In commodities trading, Brent crude oil futures LCOc1 stabilized at $74.57 a barrel after four sessions of losses after industry data showed an unexpected drop in US crude stockpiles this week. pass.
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