6:45 AM EST – Bank of England Monetary Policy Committee member Saunders speaks
9:15 AM EST – US industrial production (December)
9:15 AM EST – US manufacturing production (December)
2:00 PM EST – Federal Reserve’s Beige Book
3:15 PM EST – FOMC member Kaplan speaks
4:30 PM EST – US API weekly crude oil stock
4:30 PM EST – FOMC member Mester speaks
8:30 PM EST – China house prices (December)
China’s Shanghai Composite Index started this week on a weaker note by breaking an 11-day gaining streak on Monday. However, the market regained strength as the week progressed. On Wednesday, the Shanghai Composite Index opened the day higher and closed the day at two-month high price levels.
The market sentiment is mixed this week amid increased speculations about China’s economic growth outlook. On Tuesday, the market rebounded due to a rally in the real estate sector. On Wednesday, real estate stocks cooled off and weighed on the market. A rally in the banking and infrastructure sectors supported the market and helped it end the day mixed.
The market is looking forward to the release of December’s China house prices data at 8:30 PM EST today. The Shanghai Composite Index rose 0.23% and closed the day at 3,444.67 on January 17. The SPDR S&P China (GXC) fell 1.1% on January 16.
Amid the improved sentiment and increased funds from foreign investors, especially from China, Hong Kong’s Hang Seng Index gained for five consecutive trading weeks. Despite a weak start this week, the Hang Seng Index moved higher and reached fresh record high levels. The improved global sentiment along with the rally of index heavyweight Hong Kong Exchanges and Clearing (HKEx) added strength to the move.
On January 17, the Hang Seng Index rose 0.25% and closed the day at 31,983.41. The iShares MSCI Hong Kong (EWH) rose 0.08% on January 16.
After regaining strength on Tuesday, Japan’s Nikkei Index opened lower on Wednesday and closed the day in losses. Stronger-than-expected core machinery orders didn’t push the market higher. Weakness in US markets overnight along with a rise in the yen weighed on Japan’s markets. The market is looking forward to the release of Japan’s industrial production data at 11:30 PM EST today.
On January 17, the Nikkei Index fell 0.35% and closed the day at 23,868.34. The iShares MSCI Japan (EWJ) remained unchanged on January 16.
In the next part, we’ll discuss how European markets performed in the early hours on January 17.