Futures in Australia and Japan pointed lower on Wednesday morning, Hong Kong futures little changed. The weaker opens are impacted by the softer economic data which had weighed on US equities overnight. The Dow Jones fell by 0.2%. The S&P 500 and Nasdaq each fell 0.2% and 0.1% respectively. US consumer confidence retreated slightly, and home sales slid amid concerns about inflation and jobs.
US Treasury yields declined on Tuesday as more Fed officials downplayed price pressures. US 10-year yields fell by 5 points to near 1.56%. US 2-year yields fell 1 point to near 0.145%.
Foreign exchange trading on Tuesday saw a dollar gauge fell to the lowest level since January. According to ZERO Markets’ MetaTrader 4 platform, EUR/USD rose from lows near 1.222 to high around $1.2264. AUD/USD fell from highs near $0.7775 to lows around $0.7733.
Global oil prices were little changed overnight s investors weighed talks on higher Iranian supply against the recovery in crude demand. Brent crude rose 0.3% to $US 68.64 a barrel.
Iron ore prices lifted 1.8% to $191.65 a tonne. Precious metals trading saw gold erased 2021 losses and was trading near $US 1,898 an ounce.
Bitcoin held below $40,000, and the high market volatility is likely to persist in cryptocurrency trading in the week ahead.
Key events this week (Economic Calendar):
- Reserve Bank of New Zealand policy decision (Wednesday)
- US initial jobless claims, GDP (Thursday)
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