Rise in U.S Treasury yields along with volatile oil prices in the face of price-cooling moves by the country and other nations led Asian shares to trade flat on Wednesday.
While rising COVID-19 cases in Europe has also left investors that the same suit may follow in the U.S.
• The MSCI’s broadest index of Asia-Pacific shares outside Japan traded low 0.05%.
• While Japan’s benchmark Nikkei stock price index traded low 1.62%. This was due to investors were returning from a holiday and caught up with global falls the day before.
• The European stocks, although concerns about rising COVID-19 cases in the region cast a shadow on the outlook are expected to open flat, with both Euro Stoxx futures and Britain’s FTSE futures little changed.
• Even after the U.S. announced that it would release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain to try and cool prices after repeated calls for more crude failed to sway OPEC+ producers, oil steadied a day after rising 3% to a one-week high.
• The Brent crude futures rose 0.11% to $82.40 a barrel reversing early losses .
• While the U.S. crude futures rose 0.31% to $78.74 a barrel.
• So far this week, Chinese blue chips traded up 0.3% and are up about 0.7%, compared to a near 1% fall this week in the Asian regional benchmark.
• The yields on 10-year U.S. Treasury notes rose overnight, more than 5 basis points (bps) to as high as 1.684% while yields on 30-year Treasury bond gained 6 bps.
• Non-interest bearing gold, recovered a little after reacting poorly to the rise in Treasury yields.
• The spot price was last at $1,794 up 0.2%.
• The New Zealand dollar weakened 0.6% to $0.6928, with markets having been open to the possibility of a larger hike.
• The Turkish lira remained under pressure after a historic nosedive on Tuesday falling almost 2% in early trade to 13.057 per dollar.
• The greenback managed to edge up marginally to hit a four-and-a-half-year top of 115.22 yen.