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Writer's pictureThe Trade Academy Team
Feb 22 min read

Friday Morning Coffee - Markets Update - 02 February 2024 - APAC Stocks Catch Wall Street Wave, Europe Set for Higher Open


Markets Update: Asian Markets Rally: ASX Hits All-Time Highs, Hang Seng & Shanghai Stumble on Tightening as Global Markets Await NFP Data While Commodities Find Modest Relief.

 

Economic Calendar

 

Global Markets Roundup: 02 Feb 2024


Asian stocks took heart from a positive Wall Street session, buoyed by a softer yield environment and upbeat big tech earnings. US equity futures jumped after-hours, with META soaring 15%, AMZN climbing 7%, and AAPL the lone straggler down 3%. European markets are poised for a higher open, with the Euro Stoxx 50 future up 0.8% despite a 0.2% decline in the cash market on Thursday. The US Dollar Index (DXY) hovers around 103, while AUD shows signs of recovery and other major currencies remain relatively stable.


Australia's ASX 200 scaled fresh all-time highs on Friday, riding a wave of gains in real estate and tech stocks thanks to softer yields. The index closed at 7,702.4, pushing further into uncharted territory. Japan's Nikkei 225 edged higher, navigating a sea of earnings releases. Aozora Bank suffered a double-digit drop after news of losses linked to US property loans. Greater China markets displayed volatility. Both the Hang Seng and Shanghai Composite initially enjoyed positive momentum, fueled by strong January auto sales and approval of imported online games. However, a liquidity squeeze orchestrated by the PBoC in the lead-up to the Lunar New Year holiday dampened enthusiasm, leading to a reversal of gains.


FX:

  • Dollar (DXY): Stuck in a tight range (102.98-103.07) before crucial US jobs report, weighed down by recent decline in yields due to banking concerns and softer economic data.

  • EUR/USD: Breathed easy after finding support above 1.0800 on the back of dollar weakness.

  • GBP/USD: Maintained gains following BoE's hawkish tilt despite split vote.

  • USD/JPY: Lackluster after brief dip below 146.00 amid narrowing US-Japan yield gap.

  • AUD and NZD: Modestly supported by positive risk sentiment.

  • PBoC: Set USD/CNY mid-point weaker than expected, signaling potential easing.

  • BoC Governor: Reiterated potential for further rate hikes if inflation pressures persist.

FIXED INCOME:

  • US Treasuries: 10-year yields retreated further from 113.00 level after bull-flattening due to jobless claims and bank concerns.

  • German Bunds: Gave up gains after failing to hold above 136.00.

  • Japanese Government Bonds: 10-year yields anchored by BoJ intervention exceeding JPY 1.4 trillion.

COMMODITIES:

  • Crude oil: Staged a slight rebound after volatile trading on Gaza ceasefire uncertainty.

  • Gold: Traded sideways near recent highs supported by weaker dollar.

  • Copper: Rangebound as concerns about China's economic slowdown weighed on sentiment.

Looking Ahead:

Investors await crucial US data releases, including the highly anticipated Nonfarm Payrolls report, for clues on the health of the US economy and potential Federal Reserve policy decisions. Earnings season continues with reports from major names across various sectors. With geopolitical tensions simmering, market participants will remain vigilant for further developments.


 

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team

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