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Asian Shares Tumbled, GBP Declined Further


Asian stocks traded mostly lower on Wednesday after the Japanese Ministry of Economy, Trade, and Industry reported a 13.8% yearly drop in industrial production in August.

Crude oil prices declined on concerns that fuel demand will continue to falter as rising coronavirus cases across Europe and in the United States could impede economic growth.

Gold prices consolidated below $1,900, as lack of an agreement on additional U.S. fiscal stimulus helped the dollar stay firm.

FX Markets

The dollar index (USD) rose, as Johnson and Johnson halt it COVID-19 vaccine trial, and US fiscal stimulus showed no sign of an end.

The euro (EUR) traded almost flat after dropped to a 1-week low in the previous session after sources involved in a revamp of European Central Bank policy told Reuters that there is reluctance among ECB policymakers to follow the U.S. Federal Reserve’s move to target an average inflation rate.

The UK pound (GBP) declined further as the Brexit uncertainty remains high. The European Union wants more concessions from Britain before entering the last phase of negotiations. British Prime Minister Boris Johnson had set a deadline for the October 15 EU summit for agreeing to a trade deal and David Frost is in Brussels for intensified talks.

The aussie (AUD) surged after the Westpac-Melbourne Institute Index of Consumer Sentiment jumped 11.9% in October from September.

The kiwi (NZD) jumped after RBNZ’s Hawkesby said that some economic data have surprised to the upside. He further added that there was still a lot of uncertainty about the outlook, meaning the monetary policy will stay stimulatory for a long time to come.

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