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Markets Update: Global Markets Hold Steady Amidst Light Data Calendar and Geopolitical Tensions.
Economic Calendar
Global Markets Roundup: 09 Feb 2024
Asian markets closed mostly mixed in subdued trading as the Lunar New Year holiday approaches, draining liquidity from the region.
Market Recap:
APAC Stocks: Traded cautiously with little major newsflow, mirroring the muted performance across global markets.
European Equity Futures:Â Euro Stoxx 50 future hints at a slightly softer open (down 0.2%) after Thursday's positive close.
FX: DXY edges slightly higher in quiet trading, while NZD outperforms on hawkish expectations for the RBNZ.
Commodities: Crude futures consolidate recent gains after yesterday's rally, while Bunds remain subdued after dipping below 134.
Australian Markets Tread Water: The ASX 200 closed flat on Friday, lacking major catalysts to drive either gains or losses. Reserve Bank of Australia Governor Philip Lowe reiterated the central bank's commitment to taming inflation but left the door open for both future rate hikes and potential cuts, further muddying the outlook for the market. Nikkei 225 Hits 34-Year High: Japan's Nikkei 225 index surged to a 34-year high, breaching the 37,000 mark for the first time since February 1990. The rally was fueled by a weaker yen, making exports more competitive, and positive earnings updates from companies like Toyota and Canon. Hang Seng Under Pressure: Hong Kong's Hang Seng index dipped into the red, pressured by losses in property and technology stocks. The shortened trading session, with mainland Chinese investors already on holiday for Lunar New Year celebrations, likely contributed to the subdued activity and lower liquidity.
DXY Remains Rangebound: The US Dollar Index (DXY) held tight within a narrow range on Friday, lacking major drivers and awaiting key US inflation data revisions. EUR/USD Waits for ECB Cues: The Euro traded sideways after recent volatility, as ECB officials reiterated their data-dependent policy stance, with some suggesting rate cuts aren't guaranteed. GBP/USD Steady Despite BoE Talk: Sterling held its ground after recovering from a dip below 1.2600, unfazed by recent Bank of England pronouncements. USD/JPY Scales New Peaks: The Japanese Yen weakened again, pushing USD/JPY to fresh year-to-date highs, fueled by rising US yields and dovish BoJ comments. AUD and NZD Mixed: The Australian Dollar (AUD/USD) remained confined due to mixed risk sentiment, while the New Zealand Dollar (NZD/USD) outperformed on expectations of further RBNZ rate hikes.
Fixed Income: US Treasuries pared some losses after a strong 30-year auction, but 10-year yields hovered near recent highs. German Bunds remained subdued after a recent slump. Japanese Government Bonds (JGBs) edged lower following a lukewarm 5-year auction.
Commodities: Crude oil futures took a breather after yesterday's surge, with ongoing concerns about a wider Middle East conflict. Spot gold lacked direction, while copper futures traded sideways amid mixed market sentiment.
Upcoming Key Events:
German CPI (Final): Final reading on German inflation, potentially impacting Eurozone monetary policy expectations.
Italian Industrial Output:Â Gauge of Italian economic activity.
Canadian Employment:Â Insight into the health of the Canadian labor market.
US CPI Seasonal Factor Revisions:Â Potential adjustments to historical inflation data.
Comments from ECB's Cipollone & Fed's Logan:Â Central bankers' remarks might shed light on monetary policy stances.
Earnings from Pepsi:Â Update on the beverage giant's performance.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team