Risk-off at full steam as Oil rout returns, UK jobs – In focus

By FXStreet FXStreet (Mumbai) – Risk-off returned to markets in the Asian trades this Wednesday amid renewed selling in oil and Asian equities. As in a classic risk-off environment, safe-havens were in demand, while traders stayed away from risky assets.

Key headlines in Asia

Oil back in the red, WTI hits new 12-year low

BoJ reportedly frustrated with wage negotiations

New Zealand Consumer Price Index (QoQ) below
expectations (-0.2%) in 4Q: Actual (-0.5%)

Dominating themes in Asia – centered on JPY, AUD and NZD

A renewed risk-aversion wave hit Asia today after the oil prices resumed their dominant bear trend, with US oil hitting fresh 12-year lows, and hence, a sea of red was seen across the financial markets. Investors ran for cover towards safe-havens, seeking to protect their assets amid resurfacing global growth concerns, China slowdown fears and market unrest. The IMF on Tuesday slashed global growth forecasts from 3.4% to 3.6% for 2016 on the back of China headwinds. While the Chinese Q4 GDP print released yesterday revealed the world’s second largest economy saw the slowest pace of growth in a quarter century. China’s Q4 GDP q/y dropped 6.8% versus 6.9% expectations.

As a result, safe-haven such as the gold, yen, CHF …read more

Source:: FX Street