- Asian stocks were mixed on Wednesday as investors awaited the Federal Reserve meeting outcome today at 7 PM BST. Trading volumes were muted due to holidays in Hong Kong and South Korea. U.S. stock index futures showed mild gains in Asian trade.
- Chinese markets barely moved as trading resumed after a two-day holiday. Sentiment remains weak following recent poor economic data. The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes traded near 7-month lows.
- Japan's Nikkei 225 was the best performer, rising 0.7%, while the TOPIX added 0.2%. Investors are awaiting the Bank of Japan meeting later this week, with expectations for unchanged rates but a hawkish tone with data from 0:50 AM BST showing drop of the shipments to the U.S. for the first time in three years.
- Gold prices rose slightly, keeping recent record highs in sight as traders anticipate Fed rate cuts. Spot gold increased 0.2% to $2,574.15 an ounce.
- Oil prices fell in Asian trade after API data showed an unexpected increase in U.S. inventories. Brent crude futures dropped 0.4% to $73.41 a barrel, while WTI crude futures fell 0.4% to $69.69 a barrel ahead of inventories data at 3:30 PM BST today.
- The dollar ceded some overnight gains, dropping sharply against the yen. The euro also advanced, clawing back most of the previous day's decline and is awaiting CPI data at 10 AM BST.
- Traders are split between expectations for a 25 or 50 basis point Fed rate cut. CME Fedwatch shows a 65% probability of a 50 bps reduction.
- Japan's export growth slowed sharply in August, with shipments to the U.S. dropping for the first time in three years. Core machinery orders unexpectedly declined 0.1% in July.
- Tupperware Brands filed for Chapter 11 bankruptcy protection, citing declining demand and increasing costs.
- Nippon Steel Corp won an extension in the security review of its $14.1 billion pursuit of United States Steel Corporation, potentially pushing a decision past the U.S. elections in November.
- Meta Platforms is facing a potential hefty fine in the EU over alleged efforts to dominate the classified advertising market.
- BlackRock and Microsoft announced plans to launch a $30+ billion fund to invest in AI infrastructure for data centers and energy projects.
- EURUSD is up 0.05%. Silver dropped 0.92% and gold only 0.1%. Cryptocurrency market is also waiting for the FED after yesterday's gains; currently Bitcoin is flat and Ethereum is trading 1% lower.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
