I. Yesterday's News
International News
1. Many Federal Reserve policymakers said it may be appropriate to raise interest rates again “fairly soon” should jobs and inflation data come in line with expectations, according to the minutes of the Fed's last policy meeting released on Wednesday. The minutes of the Jan. 31-Feb. 1 discussion, at which the U.S. central bank voted to keep rates unchanged, also showed the depth of uncertainty at the Fed because of a lack of clarity on the new Trump administration's economic program.

2. The Federal Reserve is set to gradually raise interest rates as long as the U.S. economy continues on its current path, and there is yet no sign it is being too slow to respond as inflation heads higher, Fed governor Jerome Powell said on Wednesday. But his speech shed little light on whether the U.S. central bank would move as soon as next month to tighten policy.

3. Veteran French centrist Francois Bayrou said on Wednesday he was offering an alliance with independent candidate Emmanuel Macron, a move that could give the former investment banker a much-needed boost to reach the runoff in May's presidential election against far-right leader Marine Le Pen.

4. Brazil's central bank maintained its pace of interest rate cuts as expected on Wednesday, but signaled policymakers could step up monetary easing in an attempt to pull the economy out of its worst recession ever. In a unanimous vote, the bank's 9-member monetary policy committee, known as Copom, cut its benchmark Selic rate by 75 basis points for the second straight time to 12.25 percent - its lowest since March of 2015.

5. Britain's economy picked up speed to grow at the fastest rate in a year during the last three months of 2016, beating a preliminary estimate and showing how little immediate impact June's Brexit vote had on growth. The Office for National Statistics said gross domestic product rose by 0.7 percent in the fourth quarter compared with the previous three months, up from an initial estimate of 0.6 percent. The ONS also revised down its estimate for economic growth in 2016 as a whole to 1.8 percent. But business investment fell and there were signs that a tougher year lies ahead. Household spending growth slowed in the fourth quarter and separate data showed the dominant services sector expanded in December at the slowest pace in seven months.

Domestic News
6. To meet economic and social development targets this year, China should stabilise and improve macroeconomic policies, while maintaining a proactive fiscal policy and prudent monetary policy, a statement after a meeting of the Politburo said. China shall also reinforce a coordinated policy in investment and pricing.

7. U.S. Secretary of State Rex Tillerson spoke by telephone with Yang Jiechi, China's state councilor, on Tuesday and affirmed the importance of a constructive U.S.-China relationship, and the two agreed on the need to address the threat posed by North Korea, the State Department said.

8. China's integration plan for Jing-Jin-Ji in the past three years showed a coordinated development of Beijing, Tianjin and North China's Hebei Province, is not a weight, but an accumulation of benefits for the whole region by means of resource allocation and industry upgrading, according to a report in the People's Daily.

9. Hong Kong's economy is expected to grow between 2 to 3 percent in 2017, the city's government said. Hong Kong also unveiled a 35.1 billion Hong Kong dollars package of short-term relief measures, including tax breaks and handouts, that, together with other spending, is expected to lift its economic growth by 1.1 percent this year.

10. Land revenue is estimated to be HK$101 billion, which is at a relatively high level, since the Government plans to release several valuable commercial sites in the urban area next year, Hong Kong government said.

II. Market Overview
FX
1. Global Market
The dollar fell against the euro and yen on Wednesday after Federal Reserve meeting minutes disappointed expectations for a hawkish tone and anti-EU French presidential candidate Marine Le Pen's perceived chances of winning fell. The euro rose from a six-week trough of $1.0494 touched earlier to a session high of $1.0572, or as much as 0.4 percent higher on the day. The dollar was last down 0.5 percent against the safe-haven yen at 113.13 yen after slipping as much as 0.7 percent to a session low of 112.91 yen in morning U.S. Trading. The dollar index, which measures the greenback against a basket of six major rivals, was last down about 0.2 percent at 101.220 after hitting a one-week high of 101.720 in early trading.

2. Home Market
China's yuan fell slightly against the U.S. dollar after the central bank set a weaker midpoint on Wednesday, but trading stayed in a narrow range. Investors bought the dollar at the lows around 6.8760 regardless the latter's correction, while big banks continued to provide liquidity in the U.S. currency. Yuan is expected to keep rangebound unless external environment changes sharply.

Precious Metals
Gold turned higher as the dollar shifted lower on Wednesday, after minutes from the last U.S. Federal Reserve meeting showed uncertainty among policymakers about the new Trump administration's economic program. Spot gold was up 0.1 percent at $1,237.31 an ounce, while U.S. gold futures settled down 0.5 percent at $1,233.30, prior to the release of the minutes.

Commodities
1.Crude Oil
Oil prices fell more than 1 percent on Wednesday on expectations of another surge in U.S. inventories, retreating from multi-week highs hit in the previous session. Brent crude ended 82 cents, or 1.5 percent, lower at $55.84 a barrel. The U.S. West Texas Intermediate crude April contract , the new front-month future, settled 74 cents, or 1.4 percent, lower at $53.59.

2.Base Metals
Funds cut bets on higher copper prices on Wednesday, driving the metal lower ahead of minutes from the Federal Reserve's last meeting. Benchmark copper on the London Metal Exchange ended down 0.3 percent at $6,040.

U.S. Treasuries
1. U.S. bonds
U.S. long-dated Treasury debt yields edged lower on Wednesday in choppy trading, after minutes of the latest Federal Reserve monetary policy meeting struck a cautious tone on raising interest rates, reducing expectations of a hike next month. U.S. 10-year notes were last up 2/32 in price to yield 2.421 percent. U.S. 30-year bond prices were almost flat, yielding 3.040 percent. U.S. two-year note prices were also flat in price, yielding 1.224 percent.

2. Chinese bonds
China's interbank money rates pulled back in the morning session, following yesterday's panic rally, while government bond futures pared losses to rise in the positive territory. Fading impact of policy tightening and recovering buying bets buoyed market mood. But gains were capped by tighter liquidity and deleveraging expectations.

Stock Market
1. U.S. Equities
The S&P 500 ended modestly weaker on Wednesday, holding losses after minutes from the Federal Reserve's last meeting kept alive a potential near-term interest rate hike, while DuPont shares helped the Dow close at an all-time high for a ninth straight session. The S&P 500 lost 2.56 points, or 0.11 percent, to 2,362.82 and the Nasdaq Composite dropped 5.32 points, or 0.09 percent, to 5,860.63. But the Dow Jones Industrial Average rose 32.6 points, or 0.16 percent, to 20,775.6.

2. Hong Kong Equities
Hong Kong stocks ended near 18-1/2-month highs on Wednesday, led by resource and property stocks, as sentiment was lifted by the city's firmer economic growth outlook and stronger China inflows. The benchmark Hang Seng index ended 1.0 percent up at 24,201.96, the highest since Aug. 11 2015, while the Hong Kong China Enterprises Index gained 1.2 percent, to 10,537.58.

3. China Equities
China's main share indexes rose for a third day on Wednesday to approach three-month highs on higher commodity prices and improved expectations on corporate earnings. Construction material and Chinese spirit names remained strong, but upward momentum will be subdued after recent gains. With investors staying on the sidelines, major indexes are expected to remain trading in a narrow range. The Shanghai Composite Index added 7.89 points or 0.24 percent, to 3,261.22 points, its highest close since Dec. 1 when the index closed at 3,273.31. The trading volume of Shanghai A shares rose slightly to 234.5 billion yuan from 233.1 billion of the previous session.