EQUITIES
Asia-Pacific stocks were mixed in Thursday trade after data released overnight showed U.S. consumer inflation spiked in October.
The Nikkei 225 in Japan recovered from earlier losses, rising 0.55% while the Shanghai composite in the mainland China was up 0.59%. Hong Kong’s Hang Seng index dipped 0.15%.
Elsewhere, the South Korea’s KOSPI shed 0.50%, the Australia’s S&P/ASX 200 was down 0.57%, and the S&P BSE Sensex in India declined 0.60%. In Southeast Asia, the Singapore’s Straits Times index was flat.
Overnight on Wall Street, the S&P 500 tumbled 0.82%, to 4,646.71, its worst day in more than a month. The Dow Jones Industrial Average fell 0.66% to 36,079.94, and the Nasdaq Composite dropped 1.66% to 15,622.71.
OIL
Oil prices were steady on Thursday after falling hard in the previous session.
The prices were weighted on concerns of rising inflation in the U.S., spurred by climbing energy costs, which may prompt the government to release more strategic crude stockpiles to drive down prices.
U.S. President Joe Biden said he asked the National Economic Council to work to reduce energy costs and the Federal Trade Commission to push back on market manipulation in the energy sector to reverse inflation. Some of the efforts to cut energy costs might include releasing more crude from the U.S. Strategic Petroleum Reserve (SPR).
Wednesday's EIA figures showed the U.S. did release roughly 3.1 million barrels from the SPR — the largest one-week release since July 2017. That sale would have been previously approved by the Congress. EIA figures also showed crude inventories rose by 1 million barrels in the week to Nov. 5, compared with analysts' expectations for an increase of 2.1 million barrels.
The Brent now traded at $82.77 per barrel, and U.S. crude futures traded at $81.47 per barrel.
Overnight, the Brent ends at $82.64 a barrel, and the WTI settled at $81.34 per barrel. On Wednesday, Brent crude futures fell by 2.5% and West Texas Intermediate (WTI) futures dropped by 3.3%.
CURRENCIES
Benchmark 10-year Treasury yields jumped the most in seven weeks to as high as 1.592% on Wednesday, following the consumer price data release. The Treasury market is closed globally Thursday for a U.S. holiday.
The dollar index extends it advance on Thursday, hitting its highest level since mid-2020, to stand at 94.930 on speculation that the Fed may raise interest rates sooner than expected.
In cryptocurrencies, bitcoin jumped to an all-time high of $69,000 after the U.S. inflation data, though later pared gains and was last down 2% at $64,623. Ether traded at $4,633, keeping close to Tuesday’s record peak of $4,865.
GOLD
Gold stood flat around the five-month high reached overnight. Spot gold traded little changed around $1,848, and U.S. gold futures rose 0.23% to $1,852.60.
Spot silver rose 0.13% to $24.40 per ounce, and platinum flat at $1,077.10. Palladium slipped 0.88% to $2,021.00.
ECONOMIC OUTLOOK
Asian stocks were pressured on Thursday. Fears over inflation, supply chain problems and surging energy costs curbed investor risk appetite. The dollar buoyed.
U.S. Labor Department's data overnight showed U.S. consumer prices surged at the fastest pace since 1990 last month, boosting the case for faster Federal Reserve policy tightening. The CPI delivered a hotter-than-expected jump of 0.9%, boosted the annual increase to 6.2%. It was the biggest year-on-year gain in 31 years, more signs that inflation could stay uncomfortably high well into 2022, amid snarled global supply chains.
Inflationary pressures are also brewing in the labor market, with other data on Wednesday showing the number of Americans filing claims for unemployment benefits fell to a 20-month low.
Due for earnings releases on November 11 including Alibaba, Li Auto, Coupang, Yeti, Siemens, Merck, SMIC, Bridgestone, Pirelli, Suzuki Motors, and Sumitomo.
