Russia has announced that it will ban oil sales to countries that comply with the Western-imposed $60 price cap on Russian oil, while its military suffered a recent setback with a suspected Ukrainian drone reaching the main base for Russia's long-range strategic bomber fleet.

The Bank of Japan may consider ending its stimulus measures, including ultra-low interest rates, when Governor Haruhiko Kuroda steps down in 2023 due to concerns about rising inflation and the potential for higher wages.

EQUITY

Asian equities markets were quiet on Wednesday as investors waited for updates on China's efforts to reopen its economy. Wall Street ended slightly lower due to higher U.S. Treasury yields pressuring interest rate-sensitive growth shares. Tesla opened lower on reduced production in Shanghai and increased discounts on its vehicles, indicating lower demand.

GOLD

On Tuesday, the price of gold rose by 0.86% despite the dollar increasing by 0.17%. This could be due to increased demand for gold jewellery as a Christmas gift, which makes up 55% of gold demand.

OIL

Oil prices opened higher on Tuesday, fuelled by the possibility of a boost in fuel demand in China as the country eases its COVID-19 restrictions and reopens its borders. However, gains in oil prices were short-lived due to concerns about a potential global recession and the resumption of operations at some US energy plants that had been shut down due to winter storms, causing the market to close 0.59% lower.

CURRENCY

The currency market was relatively stable on Tuesday, with the dollar remaining flat despite China's softening COVID-19 quarantine rule for incoming travellers. The euro saw a slight rise against the dollar due to the central bank's hawkish stance on inflation, while the Australian and New Zealand dollars both rose against the dollar.