Australia

Australian shares are set to rise modestly at the open, after US benchmarks ended lower, treasury yields higher.

ASX futures were up 0.1% or 4 points as of 8:30am on Wednesday, suggesting a higher open.

U.S. stocks ended broadly lower as sharp losses by Boeing weighed on the Dow Industrials.

DJIA fell 231 points to 37361, the S&P 500 lost 0.4% to 4765 and the Nasdaq dropped 0.2% to 14944.

In commodity markets, Brent crude oil fell 0.6% to US$77.72 a barrel while gold was down 1.4% to US$2,027.79.

In local bond markets, the yield on Australian 2 Year government bonds was up at 3.84% while the 10 Year yield was up at 4.15%. US Treasury notes were up, with the 2 Year yield at 4.22% and the 10 Year yield at 4.05%.

The Australian dollar hit 65.79 US cents down from the previous close of 66.58. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was up at 97.86.

Asia

Chinese shares closed broadly higher with the benchmark Shanghai Composite Index gaining 0.3% to 2893.99, the Shenzhen Composite Index ending flat and the ChiNext Price Index rising 0.4%. Investor focus is on China's 4Q GDP data due Wednesday for more signals on the country's economy growth, Nomura analysts say in a note. Insurance stocks led the session's gains with New China Life Insurance rising 2.8% after a strong sales in for December and China Pacific Insurance 2.2% higher. Airlines sector rose with Hainan Airlines up 3.7% and Juneyao Airlines 3.5% higher. Shipping stocks Cosco Shipping Specialized Carriers was down 2.0% and Ningbo Marine shed 1.85%.

Hong Kong shares ended lower for the third straight session. Chinese property stocks fell broadly amid weak sentiment after disappointing 2023 contracted sales. The Hang Seng Mainland Properties Index, a gauge for the performance of mainland property companies, shed 3.2%. Longfor Group dropped 6.6% and Guangzhou R&F Properties declined 2.0%. Health services stocks fell broadly as well, with JD Health International down 6.8% and Alibaba Health Information Technology off 4.6%. China Mobile gained 0.6%. Investors await China's 4Q GDP due tomorrow. The benchmark Hang Seng Index ended 2.2% lower at 15865.92. The Hang Seng Tech Index dropped 2.3%.

Japan's Nikkei Stock Average fell 0.8% to close at 35619.18 amid a likely technical correction following the benchmark index's recent rally. However, losses may have been limited by yen weakness, which typically benefits overseas earnings of domestic exporters when repatriated to Japan. Among the worst performers on the Nikkei, Nexon slipped 4.7%, SG Holdings dropped 3.9% and Ibiden was down 3.9%. Meanwhile, Kawasaki Kisen Kaisha rose 2.8%, Oriental Land added 2.7% and Nippon Yusen K.K. was up 2.7%. USD/JPY was at 146.18, compared with 145.27 around Monday's Tokyo stock-market close. The 10-year JGB yield was up 3 bps at 0.585%.

India shares ended slightly lower after notching a fresh high the previous session. Local equities tend to perform better six months ahead of election results, Apurva Sheth, head of market perspective and research at Samco Securities, said in a note. Markets will likely remain buoyant, but volatility could shoot up as election results approach, he added. Information technology stocks weighed on the market, with Wipro down 1.9% and HCL Technologies dropping 2.05%. Reliance Industries dropped 1.4% ahead of its fiscal 3Q results later this week. Steel stocks rose broadly, with Tata Steel up 1.7% and JSW Steel gaining 0.9%. The benchmark Sensex ended 0.3% lower at 73128.77.

Europe

The pan-European Stoxx Europe 600 closed 0.2% lower at 473.06, having hit a five-week intraday low of 470.22 as interest-rate cut prospects dwindled after several European Central Bank officials suggested rate cuts look unlikely for now. This overrides economic data, writes IG analyst Axel Rudolph. "Despite German investor morale hitting an eleven-month high, eurozone inflation expectations falling to a near two-year low and slowing U.K. wage growth, European stock indices saw their second negative session of the week." Focus turns to key China data, U.K. inflation and U.S. retail sales on Wednesday, he says. Germany's DAX fell 0.3%, France's CAC-40 by 0.2% and the U.K.'s FTSE 100 by 0.5%. Fashion company Hugo Boss slipped 9.7% following below-forecast earnings.

The FTSE 100 closed Tuesday down 0.48%, plummeting to one-month lows as the prospect that rate cuts may only come much later in 2024 saw yields rebound from their recent lows. Weakness seen in European markets Monday has persisted as a continued pushback on rate cut expectations from central banks boosted the U.S. dollar and undermined confidence in risky assets, as concerns over the economic outlook grow, CMC Markets U.K. chief market analyst Michael Hewson says in a research note. The main drag on the index from a points view was AstraZeneca, after UBS downgraded the shares to sell, while the biggest faller was Rightmove, where shares slumped after JPMorgan cuts its rating to underweight, Hewson says.

North America

U.S. stocks ended broadly lower as sharp losses by Boeing weighed on the Dow Industrials.

DJIA fell 231 points to 37361, the S&P 500 lost 0.4% to 4765 and the Nasdaq dropped 0.2% to 14944.

Boeing fell 7.9% after the WSJ reported the company's delivery of 737 MAX jets to China is facing fresh delays in the wake of an Alaska Airlines flight's emergency landing after a piece of the plane blew off.

Fed governor Waller says the central bank's process of lowering rates should be "carefully calibrated and not rushed."

Morgan Stanley lost 4.2% after reporting a 32% profit decline, while Goldman Sachs gained 0.7% after its profit climbed 51%.