In the first part of the day, Asia-Pacific indexes are trading mostly lower during the session. The S&P ASX 200 loses 0.30%, the KOSPI loses 0.70%, Japan’s Nikkei 225 is trading 0.24% lower, while Chinese indices are down between 1.50% and 1.80%.
In the forex market, we are seeing limited movements with a small range of fluctuations, while US 10-year bond yields are trading slightly lower around 4.60%.
In the European session, futures point to lower openings on both the Dax (DE30) and the FTSE 100 (UK100). Wall Street futures are trading relatively flat.
In the Chinese market, there was further speculation of cash problems for banks after news circulated that Chinese banks had increased short-term fund lending. This confirms the ever-present fears of a cash crisis, even despite Beijing’s efforts to reassure investors after the recent liquidity squeeze.
China’s largest chipmaker SMIC reported quarterly results in which the company reported an 80% drop in third-quarter profit. The company is seen as a key driver for Beijing to boost the domestic semiconductor industry. Meanwhile, the company reported a year-on-year revenue decline of 15% to $1.62 billion and a drop in net profit to $94 million – well below expectations of $165 million.
The Reserve Bank of Australia (RBA) indicated that inflation remains more sustainable and the economy stronger than expected. The RBA revised its economic forecasts, expecting higher inflation and GDP growth, but lower unemployment and wage growth.
It predicts that average CPI inflation will gradually decline through the end of 2025. It forecasts a peak cash rate of around 4.5%, falling to 3.5% by the end of 2025.
In the precious metals market, gold is trading unchanged at around $1,960, silver is gaining 0.30% to $22.70, while palladium and platinum are losing ground.
In the cryptocurrency market, we are seeing a continuation of extremely positive sentiment. Despite, the pullback on Bitcoin from yesterday’s highs near $38,000 to $3,600, the increases today are seen on Ethereum.
The second largest cryptocurrency rose from levels of $2,000 at the end of yesterday’s session to over $2,120 today following news that BlackRock had registered the iShares Ethereum Trust corporate entity in Delaware, the first indication that an Ethereum ETF filing may be imminent.
Blackrock’s plans for an Ethereum spot ETF have now been confirmed, according to a Form 19b-4 filed with the U.S. Securities and Exchange Commission on November 9.
Nasdaq filed a Form 19b-4 with the securities regulator on behalf of BlackRock called the “iShares Ethereum Trust.
