Global Market Quick Take: Asia – September 20, 2023 Global Market Quick Take: Asia – September 20, 2023 Global Market Quick Take: Asia – September 20, 2023

Global Market Quick Take: Asia – September 20, 2023

Macro 4 minutes to read
APAC Research

Summary:  Risk off tone seen in the overnight session as markets awaited the FOMC announcement due today. Hot Canadian CPI weighed on Treasuries, and helped commodity currencies to outperform. Crude’s rally took a breather and first up today will be the China loan prime rate decision before heads turn to UK CPI and Fed meeting.

The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

US Equities: Stocks retreated in broad-base selling as the 10-year Treasury yield hit its highest level since 2007. The S&P500 and the Nasdaq 100 both shed 0.2%. Intel, Qualcomm, and Amazon were among the major laggards.

Fixed income: The initial weakness in the US Treasury market came when traders took note of the selloff in Canadian government bonds after a surprisingly hot Canadian CPI. Large selling in the 10-year US T-note futures in late afternoon saw the 10-year yield surged to 4.37%, the highest level in 16 years, despite a solid 20-year auction. The 2-year yield climbed 4bps to 5.09% while the 10-year yield settled 6bps higher at 4.36%. 

China/HK Equities: Markets were helped by gains in energy and utilities stocks but dragged down by EV names. The Hang Seng Index finished moderately higher, up 0.4% while the Hang Seng Tech Index slid 0.1%. The CSI300 dropped by 0.2%. News headlines include more cities relaxing home purchase restrictions, CSRC considering measures to encourage listed companies paying dividends, and plans to set up a special loan programme for urban development.

FX: Commodity currencies outperformed with NZDUSD extending gains in the Asian morning hours to 0.5950 with Q2 current account beating estimates. USDCAD reversed from lows of 1.3381 seen after hot CPI while AUDUSD continues to attempt a move towards 0.65. USDJPY remained choppy, with yen defying gains despite more verbal intervention and threats of a coordinated yen intervention with the US (see Janet Yellen comments below). EURUSD still unable to hold gains above 1.07 while GBPUSD stays close to 1.24 with CPI data ahead.

Commodities: Oil rally took a breather with FOMC event risk ahead. Brent still above $94 with API showing inventory drawdowns continued in the latest week. Signs of tightness in physical markets, including diesel, are adding to concerns and $100 oil chatter remains. Gold also turns to FOMC risks after US yields were pushed higher due to hot Canadian inflation prints.


  • Canadian inflation rose to 4.0% y/y from 3.3% y/y in July, faster than the 3.8% y/y expected amid base effects and fuel price gains. Deputy Governor Kozicki said that underlying inflation remains above a level consistent with the Bank of Canada achieving its target, and noted risks of doing both too much or too little. Markets now price about 50% probability of a hike from BOC in October.
  • RBA’s September meeting minutes had some hawkish tones as it was noted that both a 25bps and pause were considered, but statement on “recent flow of data was consistent with inflation returning to target within a reasonable timeframe while the cash rate remained at its present level” was strongly suggestive of no further rate hikes.

In the news:

  • Instacart shares close up 12% after public market debut (FT)
  • Yellen Says Yen Intervention Understandable If Due to Volatility (Bloomberg)

Macro events:

  • At 9:15 a.m. HK/SG time, China will fix the 1-year and 5-year Loan Prime Rates (LPRs). While the Bloomberg survey anticipate no change to the LPRs, the state-owned Securities Times runs an article on today’s newspaper suggesting that it is desirable to cut the 5-year LPR. “more frequently”.
  • UK CPI exp 7.0% YoY vs. prev 6.8% (due 1400 SGT)
  • FOMC announcement exp unchanged (due 21 Sep 0200 SGT) – read full preview here.

Key company events: Earnings reports for KB Home, FedEx, and General Mills are on the horizon. KB Home's Q3 revenue is expected to be around USD 1.48 billion, in line with their guidance. FedEx's FY23 Q1 results may benefit from UPS labor issues but face challenges in consumer spending and global freights. General Mills' FY24 Q1 is projected to have revenue of USD 4.88 billion. For detailed information, please refer to the Saxo Spotlight.

For all macro, earnings, and dividend events check Saxo’s calendar.


For a detailed look at what to watch in markets this week – read our Saxo Spotlight.

For a global look at markets – go to Inspiration.

Quarterly Outlook 2024 Q3

Sandcastle economics

01 / 05

  • Macro: Sandcastle economics

    Invest wisely in Q3 2024: Discover SaxoStrats' insights on navigating a stable yet fragile global economy.

    Read article
  • Bonds: What to do until inflation stabilises

    Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain inflation and evolving monetary policies.

    Read article
  • Equities: Are we blowing bubbles again

    Explore key trends and opportunities in European equities and electrification theme as market dynamics echo 2021's rally.

    Read article
  • FX: Risk-on currencies to surge against havens

    Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperform in Q3 2024.

    Read article
  • Commodities: Energy and grains in focus as metals pause

    Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities in Q3 2024.

    Read article

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.