Movements of dollars, Australian GDP, RBI decision in focus

Asian markets fell sharply in almost all areas on Wednesday, as the main index in Japan lost almost 2 percent.

Australia's ASX 200 closed down 26.11 points, or 0.44 percent, at 5,945.7 while sectors of materials and energy fell 1.66 percent and 1.57 percent, respectively.

Major miners closed down: Rio Tinto shares fell 2.47 percent, Fortescue Metal was down 1.29 percent and BHP lost 1, 98 percent Other miners also fell, with shares of Sout h32 falling 4.14 percent.

It is also noteworthy for operators: copper futures in Shanghai fell by 3.1 percent in afternoon trade, and the fall in London prices: in the early hours of the Asian day, prices of copper in London fell by 4.31 percent. Some traders attributed the decline to taking profits in the market.

In Hong Kong, the Hang Seng index fell 620.74 points, or 2.15 percent, to 28,222.06. The markets of mainland China reversed some of their losses to close mixed. The Shanghai compound fell 9.54 points, or 0.29 percent, to 3,294.12 and the Shenzhen compound advanced 12.66 points, or 0.67 percent, to 1,879.65.

"Risk appetite continued to decline in the middle of the week, with the main Wall Street indices posting more gains," analysts at the OCBC Bank in Singapore wrote in a morning note. "For now … market observers seem to be cautious in the face of uncertainty about the outcome of the Brexit talks and the possible partial closure of the US government should the negotiations fail."

Samsung Heavy Industries shares fell and finished 28.89 percent lower. The company had said it planned a rights offer of 1.5 trillion won ($ 1.38 billion) by May 2018, according to Reuters. The issue of rights was aimed at improving the company's financial structure and assigning new shares to existing shareholders, the cable service reported.

Reuters also reported that the company said in a regulatory document that it expected an operating loss of 240 billion won ($ 220 million) next year, from a loss of 490 billion this year.

In the currency market, the dollar was traded at 93,273 against a basket of other currencies as of 3:26 p.m. HK / SIN. The dollar rose from levels below the 92,700 reached at the end of last week, but was out of a maximum of 93,488.

Some attributed the movements of the dollar to events in the USA. UU They could see that the administration of President Donald Trump could seal his first major legislative victory.

Markets are closely monitoring the progress made by US lawmakers UU To approve a bill that will revise the US tax system. Over the weekend, the Senate narrowly approved his version of the plan.

Now the legislators of the Senate and the House of Representatives have to resolve differences and agree on a final bill to send to Trump.

Among other major currencies, the Japanese yen traded at 112.04 while the euro was at $ 1.1833. The Australian dollar was at $ 0.7581 at 3:27 p.m. HK / SIN, sliding from an earlier high of $ 0.7616 after the gross domestic product data for the third quarter of the country, the forecasts were ignored.

Oil prices fell on Wednesday in Asia, despite higher yields. crude inventories.

Reuters reported that analysts expect data from the US government's Energy Information Administration to show that crude stocks fell by 3.4 million barrels last week.

U.S. Crude oil fell 0.31 percent to $ 57.44, and the Brent global benchmark fell 0.22 percent to $ 62.72 per barrel at 3:28 p.m. HK / SIN.

On the other hand, the Australian economy grew by 0.6 percent in seasonally adjusted terms for the September quarter, after an increase of 0.9 percent in the period from April to June, according to the country's Bureau of Statistics. .

That number, Reuters said, market predictions barely topped 0.7 percent growth in the quarter.

On Tuesday, the Reserve Bank of Australia kept its cash rate unchanged at an all-time low of 1.5 percent. In its policy statement, the central bank said it expected the economy to grow on average around 3 percent in the coming years, with a better outlook for non-mining business investment and greater investment in public infrastructure.

Also in the file: The Reserve Bank of India will announce its policy decision at 5 p.m. HK / SIN.

DBS analysts said in a morning note that a "decision on hold has been cut." Instead, what will be a focus for market observers will be the central bank's policy orientation "divided between a neutral or hawk bias," the analysts wrote.

Elsewhere, bitcoin broke $ 12,000 for the first time on Wednesday morning the cryptocurrency continued its highest march.

Source link

Check Also

Alaska Airlines introduces basic rates for seats on the back of the plane

Delta, American and United are already selling a similar no-frills rate called "basic economy" that …

Leave a Reply