Haidi welcome to daybreak australia. In sydney margaret have just come online. Annabelle im annabelle droulers. We are counting down to asias Major Trading opens and the stop top stories this hour. A positive move as wall street heads its 15th record high of the year. Investors are awaiting jay powells report to congress for dates on the fed rate outlook. Haidi ahead opecplus extending its supply cutbacks until midyear amid soaring production from rivals and uncertainty over chinese demand. Stephen in beijing, one of chinas most important gatherings of the year is about to begin with leaders set to unveil their targets and strategies, perhaps policies, for road reviving the economy. Annabelle kicking of the week with breaking data out of korea this morning. We have industrial output numbers dropping but coming in better than expected over the course of january. Output of more than 12 or 13 on the year passing estimate were 10 . Also industrial output is falling, still and a contraction
You are watching daybreak asia live from new york, sydney and hong kong. Counting down to asias major market opens. Australia is online, the top stories. Relief after a retreat in treasury yields following a volatile session. Bearish bond views. Hamas frees two hostages and chevron vies hess in the second Major Oil Deal in a few weeks. Annabelle thank you, weve got the open of the asx 200. Pricing with a staggered start. What is happening in the bond space is where we have noticeable moves and sherry can get through the details but there was a pullback in yields coming across in the three and 10 year as we get trading underway. Whether we see relief coming through for equities and a softer dollar, we are seeing the a sx coming online fairly flat as we get underway but if it trades in the green that would snap three days of losses for the australian benchmark. Something to be monitoring. Ubs saying we can expect more volatility because the relationship between bonds, rates, the fed is b
Deeper contraction. All of this being wrapped up along with concerns about how the Biden Administration may be quadrupling tariffs on chinese goods. Along with that, dont forget, we have u. S. Data showing Consumer Sentiment declining, rising Inflation Expectations placed on one survey. We will keep an eye on the u. S. Cpi numbers. Asia stocks are treading water. Although we are seeing a bump up on the hang seng. Keeping in ai on the offshore you on as it moves toward the 724. In keeping in ai on the japanese currency, along with jgbs. We got the boj in todays purchase, reducing the number of bonds for five to 10 year. This, as some say, a test balloon for scaling back its bond purchases. Take a look at the data out of china. This is a broad measure of credit. It has declined for the First Time Since 2017. This is when the data first started being the concern here is the pbocs ample liquidity that the household firms are not biting, adding to the list of concerns related to china. Paul
Haidi welcome today break australia. I am having these stroudwatts in sydney. Annabelle im Annabelle Droulers in hong kong. Shery i am shery ahn. More than 1100 people were killed as fighting between israel and hamas enters a third day. The u. S. Is moving an Aircraft Carrier strike closer to the region. The middle east goes to war with the yen and go higher. Soil traders watching calls for governments to support the palestinian people. Iran is a key or producer and backer of the hamas group. This is how wti and brent are coming on in the Asian Session after a shark attack by hamas on israel. Iran is now seen as a wildcard when it comes to conflict potentially spreading to the rest of the middle east. This is the pricing after oil posted its biggest weekly drop since march. There is no immediate threat to supply at this point. However, we are watching very closely the vital shipping route that tehran previously threatened to close and of course Higher Oil Prices could mean global Gover
In sydney. Im Annabelle Droulers in hong kong. I am kathleen hays. Conscious sentiment as traders recalibrate rate hike expectations. All major u. S. Indices had their worst months since june. The cleveland fed president makes it clear she does not expect the central bank to cut rates next year. She says they need to be above 4 . Australia holds a economic summit in canberra. Now, august is ending with a whimper rather than a bang. The likelihood of a fed visit pivot is embraced after the jackson hole speech. Jack josh jay powell gave a very hawkish message. Look at the futures. A little rebound here. Not surprising. It was not such a big move, just the totality of all major indices having the worst month since june. The s p down more than 4 in august. Every major asset class fell in august. New york crude is now down about . 71. 88. 84. For the month we had a drop of more than 9 in august. That was the biggest monthly drop since 2020, the start of the pandemic. People are worried abou