VOT Research Desk
Despite the strong gains the S&P500 achieved on Tuesday, Asian markets are performing below average. Prior to the release of the Federal Open Market Committee (FOMC) minutes, which is scheduled for Thursday, Asian equities have become cautious.
The US dollar index (DXY), which had fallen to about 107.00 amid conflicting market reactions, has shown signs of recovery recently.
At the time of publication, ChinaA50 was down 0.10%, Hang Seng was up 0.65%, and Nifty50 was up 0.12%. Nikkei225 in Japan is closed on Wednesday.
Despite general optimism in the international markets, China’s markets are struggling to gain ground. The Chinese government will likely be forced to revert to tight limitations as the sole option to stop the spread of Covid-19 as infections rise.
The Reserve Bank of New Zealand (RBNZ) has announced a rate increase of 75 basis points outside of Asia (bps). The central bank had already increased its Official Cash Rate (OCR) by 50 basis points. In five separate monetary policies, the RBNZ increased the OCR by 50 bps.
The RBNZ made a larger rate hike announcement after expressing concern about growing inflationary pressures. The price rise index has not yet verified a peak or shown indications of weariness.
Worries about an expanding quantity of oil are present. Oil prices are being supported by a sustained decline in oil stocks, as reported by the American Petroleum Institute (API). The OPEC+ agreement will remain in effect through the end of 2023, according to the oil cartel. Prior to this, the nations that export oil decided to reduce their daily oil output by two million barrels in order to raise oil prices.
While US API reported a 4.8 million barrel decrease in oil stocks for the week ending November 18.
