- Indices from the Asia-Pacific region are mostly trading lower. The market in China, after yesterday’s gains, is seeing a correction today of 2.00-2.70%. The Japanese Nikkei 225 index is up 0.50% to 37,850 points, while futures on the Singapore SG20cash index are down 0.75% to 341 points.
- U.S. indices closed in positive territory, recording moderate gains near their peaks. Stock index prices were supported by a weakening dollar. The USDIDX dollar index lost 0.40% yesterday, and today, for the first time in many months, it fell below the 100.0000 point level.
- China’s central bank lowered the cost of its medium-term loans to banks on Wednesday, in line with broad policy easing measures announced a day earlier to support the weakening economy.
- The People’s Bank of China (PBOC) said it had lowered the interest rate on 300 billion yuan (US$42.66 billion) of medium-term loans (MLF) to certain financial institutions to 2.00% from 2.30%.
- Futures on European indices point to a lower opening of the cash session. The DAX and UK100 are trading about 0.30-0.45% lower.
- One of the weaker currencies today is JPY and NZD, while one of the stronger ones is EUR and CHF. Volatility in the forex market is relatively low.
- Australia’s CPI inflation fell to its lowest level in three years in August, thanks to the government’s electricity rebate and falling petrol prices. Prices rose 2.7% year-on-year in August, in line with expectations and compared to 3.5% year-on-year in July. The Australian dollar is trading down slightly following the report.
- Japan’s PPI inflation for the services sector rose to 2.7% y/y versus 2.6% expected and 2.8% previously. This is a positive sign for the BOJ, which is closely monitoring price growth in the service sector.
- European Central Bank Governing Council member Klaas Knot said that he expects gradual interest rate cuts ‘in the near future’ and in the first half of next year. However, the banker does not expect interest rates to return to extremely low levels. Knot believes that interest rates should be lowered to around 2.00%.
- Cryptocurrencies are seeing slight declines but remain at high levels. Bitcoin is down just 0.05% and stays above $64,000, while Ethereum is down 1.00% to $2,630.
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