Asia equity markets traded mixed following the lacklustre lead from Wall St. where retailers were pressured amid soft earnings from Macy's
- Overnight trade saw an overall lack of pertinent macro newsflow with Asian equities subsequently trading with little in the way of firm direction
- Similar price action was also observed in FX markets with GBP/USD unable to recoup yesterday’s BoE-inspired losses
- Looking ahead, highlights include US CPI, Retail Sales, Uni. Of Michigan, Fed’s Evans, Harker and ECB’s Constancio
, while a lack of tier-1 data or drivers added to the subdued tone heading into the weekend. ASX 200 (-0.8%)
traded in the red as REIT and energy sectors underperformed, while Nikkei 225 (-0.5%)
was also negative alongside a firmer currency after USD/JPY relinquished the 114.00 handle. Shanghai Comp. (+0.4%)
and Hang Seng (+0.1%)
were choppy, but still outperformed the region following a CNY 459bln Medium-term Lending Facility operation by the PBoC. 10yr JGBs tracked the gains in T-notes amid a risk averse tone in Japan, while the curve slightly steepened on mild underperformance in the super long end.
PBoC skipped open market operations, but injected CNY 459bln via its medium-term lending facility. (Newswires)
PBoC set CNY mid-point at 6.8948 (Prev. 6.9051).
ECB's Praet said `we are not yet there' on normalisation debate. (Newswires)
FX markets traded rangebound overnight with the USD index flat amid a lack of key data releases to spur price action
. Elsewhere, GBP/USD failed to make any significant recovery from its BoE-triggered losses and remain below the 1.2900 level, while antipodeans were mixed with AUD initially outperforming its counterpart across the ditch as AUD/NZD tested the 1.0800 level to the upside.
Trade across the commodities complex was uneventful, with copper and gold (+0.2%) prices flat tspanoughout the session amid a lack of drivers. Elsewhere, oil prices also traded sideways in which WTI crude futures sat on minimal gains and eyed the USD 48/bbl level to the upside.
Treasuries finished the day at highs despite a soft 30-year auction, in which 10-year T-notes settled at 124.29+, up 3+ ticks.
US President Trump is said to still be weeks away from nominating anyone for the Fed, according to a White House official. (Newswires)