Asian Stocks Get Wall St Boost, UK CPI Looms Large For Pound
- Asian stock markets rose across the board Tuesday
- There wasn’t much domestic news but US earnings season kept the party going
- UK inflation data will grab attention as European trade ramps up
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Asian stocks rose Wednesday buoyed up by ongoing brightness in US corporate earnings. Wall Street stocks surged in the previous session thanks to crowd-pleasing reports from Netflix, Goldman Sachs and UnitedHealth.
This was more than enough to lift the local equity market tone on a day of scant economic news. The Nikkei 225 ended up 1.4%, with all other bourses safely in the green - if not to the same extent. The ASX 200 added 0.3% and the Shanghai Composite was 0.7% higher as its close loomed.
JAPAN’S TRADE SURPLUS SWELLS
The Japanese Yen rose after its home nation unexpectedly logged its biggest trade surplus since February 2017. The US Dollar was broadly higher, too, however. Markets also digested news that China had cut its reserve requirement ratio for the banking sector, a move which also helped underscore risk appetite.
USD/JPY seems to be in the process of failing once more at its established daily-chart range top.
However, the bulls may not be quite so easily dissuaded and this may not be the time to fight them.
UK INFLATION DATA WILL BE KEY FOR GBP
Still to come Wednesday are official March inflation numbers out of the UK, along with that country’s house-price index. DailyFX Senior Currency Strategist Ilya Spivak notes that British data have underperformed recently and cautions that more of the same from inflation could hit rate-hike bets and, thereby, the Pound.
The Bank of Canada will pronounce on interest rates and is expected to hold them steady for April. Finally, the US Department of Energy will release oil inventory figures from key delivery node Cushing, Oklahoma.
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--- Written by David Cottle, DailyFX Research
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