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Writer's pictureThe Trade Academy Team

Monday Morning Coffee - Markets Update - 14 October 2024 - APAC Markets Mixed Amid Japanese Holiday, Weak Chinese Inflation, and Uncertain Stimulus

Updated: Oct 17


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Markets Update: APAC stocks were mostly up amid mixed Chinese data and Japanese holiday impacts, with US and European futures showing mild movements; currencies saw the dollar rising while commodities experienced slight declines.

 

Global Markets Roundup: 14 October 2024


FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | GOLD | CL1! | ZC1! | ZS1! HG1!


Stocks in the APAC region mostly traded higher, although gains were limited due to the Japanese holiday, weak Chinese inflation, and a lack of details on Chinese stimulus measures. Investors were also anticipating Chinese trade data. The ASX 200 was supported by strong performances in mining stocks, despite a slight decrease in commodity prices. The Hang Seng and Shanghai Composite had mixed trading sessions, with the former dropping below the 21,000 level initially, particularly affected by weakness in the technology and consumer sectors following the Chinese Ministry of Finance's briefing that did not specify the size of the stimulus package. Conversely, the Shanghai Composite eventually recovered from the lack of stimulus details and soft inflation data, as other government departments pledged support, leading to gains throughout the session. US equity futures lacked clear direction at the beginning of the week, maintaining the levels from Friday. European equity futures indicated a slightly lower opening, with the Euro Stoxx 50 futures down 0.1% after a 0.7% increase in the cash market on Friday. FESX1! | Z1! | NI225 | NQ1! | ES1!


In currencies, during Asian trading on Monday, the dollar maintained its gains and even increased, with market attention focusing on China's somewhat disappointing weekend stimulus announcements due to a holiday in Japan reducing liquidity. The euro was trading down 0.13% at $1.0922 EURUSD, while the pound remained stagnant but experienced a 0.2% drop at one point GBPUSD. The dollar strengthened by 0.13% against the Japanese yen, reaching 149.2750 USDJPY. The dollar index DXY hovered just above 103, nearing last week's peak - its highest level since mid-August - as traders scaled back expectations of significant rate cuts by the Federal Reserve in its upcoming meetings this year. China's yuan USDCNH declined by 0.2% against the dollar, while the Australian dollar AUDUSD, closely linked to China's performance, dropped by 0.16% to $0.67385. The onshore yuan USDCNY has fallen by 0.7% against the dollar since September 24, when the People's Bank of China launched China's most aggressive stimulus measures since the pandemic. The New Zealand dollar NZDUSD dipped by 0.15% to $0.61, following a 0.8% decrease last week after the central bank slashed rates by half a point and hinted at further cuts in the future. EURUSD | USDJPY | GBPUSD | AUDUSD | NZDUSD


In commodities, Brent crude futures declined by 1.1%, or 86 cents, to $78.18 per barrel, while U.S. West Texas Intermediate crude futures dropped 1.2%, or 83 cents, to $74.73 per barrel. Gold remained steady at $2,655 per ounce on Monday after increasing by 1% in the previous session, with markets monitoring the Federal Reserve’s interest rate projections post recent inflation data. Copper saw a decrease in early Asian trading, with prices potentially experiencing volatility in the short term due to a correction from earlier macroeconomic optimism. The three-month LME copper contract is currently down by 0.8% at $9,714.50 per ton. The primary corn contract on the Chicago Board of Trade (CBOT) labeled as ZC1! experienced a 0.2% decrease, reaching $4.14-3/4 per bushel, marking its lowest point since September 27. CBOT soybeans, designated as ZS1!, also saw a 0.2% decline, dropping to $10.04 per bushel, falling below the $10 mark for the first time in a month. Meanwhile, CBOT wheat, identified as ZW1!, decreased by 0.5% to $5.96 per bushel, remaining close to the 3-1/2-month peak recorded earlier this month. GOLD | CL1! | ZC1! | ZS1! HG1!


Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.



 

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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