The Australian inflation data fueled concerns over the mounting price pressure globally
Wall Street stocks climbed to fresh all-time highs overnight, albeit were slightly off the peaks by the close. Investors were digesting upbeat corporate earnings along with solid economic data. U.S. consumer confidence rose in October due to improving labor market prospects while new home sales jumped 14.0% to a seasonally adjusted annual rate of 800,000 units last month. On the negative side, Facebook missed estimates for revenue and monthly active users in the third quarter. Following the report, the company’s stocks fell over 5% to close nearly 4% lower.
Asian stock markets were mostly lower on Wednesday as the Australian inflation data fueled concerns over the mounting price pressure globally. The CPI rose by 0.7% to 2.1% in the third quarter while fuel costs jumped 7.1%. The S&P-ASX 200 in Sydney finished 0.07% higher, the Shanghai Composite lost nearly 1% while the Japanese Nikkei 225 shed less than 0.1%.
In Europe, equities opened with marginal losses amid mixed corporate earnings. Deutsche Bank stocks fell nearly 5% after the German lender reported a fall in revenues at its investment banking unit during the third quarter. On the positive side, the bank posted its fifth consecutive quarter of profit. The pan-European Euro Stoxx 600 Index was lower by 0.1% in early deals. On the data front, the Eurozone September M3 money supply came in at +7.4% versus +7.5% y/y expected.
Meanwhile, major currency pairs look steady today, with the greenback trading mixed in relatively tight ranges. EURUSD extended a downside correction from the 1.1670 intermediate resistance to settle around the descending 20-DMA. A daily close below the 1.1600 figure would mark further deterioration in the short-term technical picture. Trading will likely remain muted at this stage, as market players are getting more cautious ahead of the ECB meeting due on Thursday.