EQUITIES
Asia-Pacific stocks were mostly higher as investors reacted to the release of China’s inflation data.
The Shanghai composite in mainland China rose 0.19%, while the Hong Kong markets are closed for a holiday.
The Nikkei 225 in Japan advanced 1.09%, the South Korea’s KOSPI gained 1.15%, the S&P/ASX 200 in Australia climbed 1.09%, and the S&P BSE Sensex in India added 0.60%.
Singapore’s Straits Times index flat after the country’s central bank unexpectedly tightened monetary policy on Thursday.
The S&P 500 and Nasdaq ended higher on Wednesday, led by gains in shares of big growth names. The S&P 500 gained 0.30%, to 4,363.8 and the Nasdaq Composite added 0.73%, to 14,571.64. Meanwhile the Dow Jones Industrial Average fell 0.53 points to 34,377.81, the
OIL
Oil prices rose on Thursday, reversing last two days of losses, on expectations that high natural gas prices as winter approaches may drive a switch to oil to meet heating demand needs.
Prices were also supported by concerns about supply tightness after the U.S. EIA said on Wednesday that crude oil output in the U.S. is going to decline in 2021 more than previously forecast. The EIA will release its inventory report later Thursday at 1500 GMT.
Meanwhile the data from the API reported that U.S. crude stockpiles rose by 5.2 million barrels for the week ended Oct. 8. The gasoline inventories fell by 4.6 million barrels and distillate stocks fell by 2.7 million barrels.
The OPEC organization trimmed its world oil demand growth forecast for 2021 in its latest monthly report on Wednesday, while maintaining its 2022 view.
The Brent now traded at $83.75 per barrel, while U.S. crude futures traded at $80.95 per barrel.
Overnight, the Brent ends at $83.18 a barrel, and the WTI settled at $80.44 per barrel.
CURRENCIES
The 10-year Treasury yield sat at 1.549% after falling three bps overnight and the two-year yield eased marginally to 0.356% after rising 1.8 bps overnight.
The dollar pulled back with the decline in longer Treasury yields and took a breather on Thursday. The dollar index, which measures the currency against six rivals, was flat at 94.043, after dropping 0.53% on Wednesday, the most since Aug. 23.
GOLD
The spot gold price eased on Thursday, hovered around $1,788.80 per ounce, while the U.S. gold futures fell to $1,789.70.
Spot silver down 0.78% to $22.99 per ounce, platinum fell 0.62% to $1,017.90, and palladium added 0.11% to $2,108.50 per ounce.
ECONOMIC OUTLOOK
Asian stock markets rose, as investors reacted to the release of Chinese inflation data for September. The longer-term Treasury yields, and the dollar fell as traders weighed elevated U.S. inflation and Federal Reserve minutes affirming a looming reduction in stimulus.
China's PPI surged 10.7% from a year earlier in September, its fastest pace since the data began, the National Bureau of Statistics said on Thursday. The NBS data also showed China's CPI rose 0.7% year-on-year in September versus a 0.8% increase in August.
Minutes from the U.S. Federal Reserve’s September meeting showed policymakers’ growing concern about inflation and a general agreement to start tapering asset purchases soon. The Federal Reserve signalled they could start reducing crisis-era support for the economy in mid-November, though they remained divided over how much of a threat high inflation poses and how soon they may need to raise interest rates, the minutes showed.
Ahead on Thursday, markets are awaiting U.S. producer prices and jobless claims figures as well as appearances from Bank of England and Federal Reserve policymakers.
Among U.S. earnings, JPMorgan Chase & Co.’s dealmakers posted their best quarter yet, though consumer and commercial loan growth remained challenged. Bank of America, Citigroup, Wells Fargo and Morgan Stanley will report results on Thursday, while Goldman Sachs is due to report on Friday.
