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Global market update: APAC markets tick higher as US indices rally

Published 08/11/2023, 11:15 am
© Reuters.
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Investing.com - Asian-Pacific sharemarkets are expected to open flat on Wednesday as investors contemplate the Reserve Bank of Australia's (RBA) Melbourne Cup day decision to raise interest rates.

By 11:30 am AEDT (12:30 am GMT) the S&P/ASX 200 added 0.3% while the Nikkei 225 and KOSPI 200 gained 0.4% apiece. 

In the US, the market was driven by gains in technology shares, with the Nasdaq recording its eighth consecutive day of gains and the S&P 500 marking its seventh day of advances. This represents the most substantial winning streak in approximately two years.

The US market continues to benefit from the optimism that the Federal Reserve has concluded its interest rate hikes. This optimism is bolstered by indications that the US economy is cooling down.

In commodities, Brent crude oil experienced a slight increase of .15%, reaching US$81.73 per barrel, while gold prices fell to US$1,962.60.

In the local bond market, yields on Australian 2-year government bonds fell to 4.315%, while the 10-year yield also decreased to 4.708%. US Treasury notes saw a decline, with the 2-year yield at 4.93% and the 10-year yield at 4.57%.

The Australian dollar was trading at 64.21 US cents.

Chinese stocks experienced a downturn on Tuesday, as new trade data highlighted an inconsistent economic recovery. This, coupled with global market concerns over potential global rate tightening, led to a 0.4% fall in the CSI 300 Index, while the Shanghai Composite Index remained largely unchanged at market close.

Hong Kong's Hang Seng Index fell by 1.7%, and the Hang Seng China Enterprises Index dropped by 1.5%.

European shares were relatively muted on Tuesday as a slump in energy stocks counterbalanced gains in the financial sector. The pan-European STOXX 600 remained flat after ending a five-day streak of gains on Monday.

In the UK, the FTSE 100 closed slightly lower with a loss of 0.10%.

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