Concerns from the previous trading sessions and a list of other global concerns weighed on risk sentiment, enough to drag on the comdolls and boost the safe-haven yen.
- Australia’s CB leading index inches up by 0.2% vs. 0.1% growth in July
- BOJ’s core CPI (y/y) up by another 0.5% in September
Overall risk aversion
With not a lot of top-tier data on the docket, Asian session players got busy pricing in economic concerns from around the world.
Italy’s debt plot, for example, could thicken IF the European Council launches the “excessive debt procedure” on the Italian government’s latest plan.
Meanwhile, stalled Brexit negotiations, geopolitical concerns, a “meh” start to the earnings season, and worries over China’s growth have inspired a profit-taking in China’s markets enough to drag the Nikkei and other Asian bourses lower.
- Nikkei is down by 2.05% to 22,151.5
- A SX 200 is down by 0.73% to 5,846.4
- Shanghai index is down by 1.37% to 2,618.416
- Hang Seng is down by 2.03% to 25,622.8
Commodities also reflected market risk aversion with gold inching higher during the session. Meanwhile, crude oil benchmarks were further weighed down by Saudi Arabia pinky swearing to play a “responsible role” in the oil markets.
- Gold is up by 0.13% to $1,223.50 per troy ounce
- Brent crude oil is down by 0.49% to $79.57 per barrel
- U.S. WTI is down by 0.36% to $69.25 per barrel
Major Market Mover(s):
AUD and NZD
Weaker Chinese growth and markets could lead to less demand for Australia and New Zealand’s exports so it’s not surprising to see the Aussie and Kiwi go down along with other higher-yielding bets today.
AUD/USD is down by 16 pips (-0.23%) to .7066; AUD/JPY is down by 37 pips (-0.46%) to 79.53; AUD/CHF is down by 13 pips (-0.19%) to .7040; EUR/AUD is up by 24 pips (+0.15%) to 1.6211, and GBP/AUD is up by 42 pips (+0.23%) to 1.8346.
NZD/USD is down by 12 pips (-0.18%) to .6540; AUD/NZD is up by 6 pips (+0.05%) to 1.0803; EUR/NZD is up by 19 pips (+0.11%) to 1.7514; GBP/NZD is up by 36 pips (+0.18%) to 1.9820, and NZD/JPY is down by 31 pips (-0.42%) to 73.61.
The safe-haven yen soaked up the risk-averse vibe to trade higher across the board.
USD/JPY is down by 26 pips (-0.23%) to 112.5; EUR/JPY is down by 40 pips (-0.31%) to 128.93; GBP/JPY is down by 34 pips (-0.23%) to 145.90, and CHF/JPY is down by 29 pips (-0.26%) to 112.96.
Watch Out For:
- 10:00 am GMT: U.K.’s CBI industrial order expectations expected to maintain -1 reading
- 10:30 am GMT: BOE MPC member Andy Haldane to give a speech in Paris