Author: Theph

HONG KONG: China’s yuan was little changed against the dollar on Wednesday after the central bank set a weaker daily midpoint, with bolstered expectations of further US rate hikes capping its strength and supporting the greenback.

 The onshore yuan last traded 0.09% higher at 6.6746 to the dollar. Its offshore counterpart traded at 6.6736 per dollar, up about 0.04% in Asian trade.

Prior to the market opening, the People’s Bank of China set the midpoint rate at 6.7191 per dollar, its weakest since October 22 and 336 pips weaker than a Reuters estimate.

The spot yuan is allowed to trade 2% either side of the fixed midpoint each day.

The central bank has weakened its daily official yuan guidance this month after consistently strengthening it for a year, which traders and analysts have interpreted as an attempt to manage the pace of the currency’s appreciation.

 In another move that could temper gains for the yuan, several Chinese banks are sharply lifting dollar deposit rates, in some cases above US benchmarks, Reuters reported earlier this week.

“With the market’s broad expectation of further appreciation no longer holding, USD/RMB has moved in a relatively narrow range in the short term,” analysts at Nanhua Futures said in a note.

 “However, October export data remained strong. Although momentum has eased somewhat, the trade surplus is still relatively large, suggesting that the RMB’s broader appreciation trend has not yet come to an end,” they added.

 The dollar held its gains to be near a two-week high in early Asian trade on Wednesday after hotter-than-expected US inflation data and hawkish comments from Federal Reserve officials fuelled bets the US central bank will raise rates next month.

Fed funds futures now imply a 91.9% chance of a 25 basis point rate rise next month and a 9.1% chance of a 50-basis-point move, according to CME Group’s FedWatch tool.

Source: brecorder

New Zealand have included Devon Conway, Rachin Ravindra and Tom Blundell in a strong squad for the Test series against India with all three aiming to be fit for the first Test next week, New Zealand Cricket said on Wednesday.

Opener Conway sustained a concussion in a collision with paceman Matt Henry in training during the one-day series against the tourists.

All-rounder Ravindra dislocated his shoulder while filming a diving catch during a promotional shoot in September and has not played in either the ODI or Twenty20 series against India.

Wicketkeeper-batsman Blundell is recovering from a quadricep injury and has played just one domestic match since June.

New Zealand’s last Test series was in England in June, which they won 2-1. Kane Williamson retired from international cricket after the series.

The other changes to the squad from the England tour are the addition of fast bowler Jacob Duffy and the absence through injury of all-rounder Zak Foulkes as well as pacemen Will O’Rourke and Ben Sears.

“The squad is largely consistent with the team that competed in England earlier this year, so it’ll be great to be back together to try and recreate some of that success on home soil,” said coach Rob Walter.

“We’ve experienced great crowds so far during the white-ball series and we’re really looking forward to having that support during the Tests.”

The first Test starts at Basin Reserve in Wellington next Wednesday with the second taking place at the Hagley Oval in Christchurch from November 27.

Squad: Tom Latham (captain), Tom Blundell, Devon Conway, Jacob Duffy, Matt Henry, Kyle Jamieson, Daryl Mitchell, Henry Nicholls, Glenn Phillips, Rachin Ravindra, Mitchell Santner, Nathan Smith, Blair Tickner, Will Young

Source: brecorder

SYDNEY: The Australian dollar was pinned to a seven-month low on Wednesday and trailing peers as grim economic surveys reinforced bets that local interest rates have peaked, while a hot US inflation reading raised expectations for a sharp move higher in US rates.

Overnight, only the oil-linked Norwegian krone fared worse than the Aussie when a hotter-than-expected US inflation reading set off a surge in the US dollar.

The Aussie slid about 0.9%, touching a seven-month low of $0.6844, with the break of support around $0.6855 opening the way for further losses.

The next support is $0.6748.

“A sustained break below $0.6850 could see downside momentum accelerate, particularly if higher US yields continue to undermine risk appetite,” said Chris Weston, head of research at Pepperstone in Melbourne.

On Tuesday, surveys in Australia showed consumer sentiment hit a four-year low in November and business conditions remained stuck in negative territory, a sign that things might be on the way to getting worse.

Rates markets are almost certain the Reserve Bank of Australia has finished hiking after five rate rises this year, and have priced in a 25 basis point cut by the end of next year.

That’s in contrast to the US, where traders now see a small chance of a 50 basis point hike next month after core CPI came in higher than expected at 0.3% for October.

Before the release, influential Fed Governor Christopher Waller had said policymakers should consider a 50 basis point move if core inflation hit 0.3%.

The kiwi dollar has gained this week and held up relatively better overnight.

It steadied at $0.5605. Election results showing Prime Minister Christopher Luxon’s incumbent three-party coalition could govern have been a support, on the basis it would preserve the central bank’s sole mandate on inflation and keep government spending steady.

Markets have priced three 25 basis point hikes in New Zealand through 2027.

Source: brecorder

Selling was observed at the Pakistan Stock Exchange (PSX) amid concerns about ongoing attacks on shipping in the Strait of Hormuz, with the benchmark KSE-100 Index shedding over 500 points during the opening minutes of trading on Wednesday.

At 9:45am, the benchmark index was hovering at 178,812.16, down 523.08 or 0.29%.

Key sectors saw selling, including automobile assemblers, cement, commercial banks, oil and gas exploration companies and OMCs. Index-heavy stocks, including HUBCO, SSGC, MARI, PPL, MCB, MEBL, NBP and UBL, traded in the red.

On Tuesday, PSX staged a powerful rally as broad-based buying lifted investor sentiment amid easing geopolitical tensions following US President Donald Trump’s peace remarks. The benchmark KSE-100 Index jumped 5,448.56 points, or 3.13%, to close at 179,335.24 points.

Globally, bonds tumbled, and the dollar stayed firm after a hot US inflation print and hawkish central bank rhetoric raised the risk of an outsized ​half-point rate hike from the Federal Reserve next month, though stocks remained resilient.

Data showed overnight core US inflation ran at a ‌monthly rate of 0.3% in October, higher than the forecast 0.2%. Before the data landed, Fed Governor Christopher Waller said a core reading of 0.3% would prompt him to consider a 50-basis-point hike at the next meeting in December.

Dallas Fed President Lorie Logan said two more rate rises were needed, possibly rapidly, and Chicago Fed President Austan Goolsbee warned of a “real inflation ​issue” on hand, while Philadelphia Fed President Anna Paulson called for gradual rate hikes.

Fed funds futures now imply a quarter-point move is essentially ​locked in, with a 10% probability of a 50 bp rise. A total of three quarter-point moves are fully priced ⁠in by the middle of next year.

In Asia, MSCI’s broadest index of Asia-Pacific shares rose 0.2%, defying the ​weakness on Wall Street, and Japan’s Nikkei climbed 0.6%.

Shares of SoftBank Group slid 3.3% after it took a net loss of $7 billion in the second quarter, ​hit hard by hefty buildout costs for US data centres.

South Korea’s KOSPI rose 0.4%, while China’s blue chips lost 0.2%.

Nasdaq futures bounced 0.5%, while S&P 500 futures rose ‌0.2%. European ⁠stock futures gained 0.6%.

Nvidia remained at the centre of a political storm as the company probes whether CEO Jensen Huang was targeted by a foreign intelligence operation. Its shares slid 5.5% overnight, taking losses from their recent peak to 30%.

This is an intraday update

Source: brecorder