_edited_edited.png)
Markets Update: Global Markets Pull Back as Risk Sentiment Sours; Markets digest mixed signals from Fed meeting, await clarity on future rate cuts.
Economic Calendar
Global Markets Roundup: 01 Feb 2024
APAC stocks traded in mixed territory on Thursday, echoing cautious sentiment after losses on Wall Street. Banking sector concerns and Fed Chair Powell's dismissal of near-term interest rate cuts weighed on investor appetite.
Positives in Asia:
China's Caixin Manufacturing PMI surprised on the upside, topping forecasts and suggesting continued growth momentum in the world's second-largest economy.
China's Finance Ministry announced plans for structural tax cuts in 2024, potentially boosting business activity and consumer spending.
Concerns linger:
USD rebounded above 103.50, potentially dampening risk appetite for some currencies and assets.
Fed's hawkish stance kept expectations for rate cuts in check, impacting sentiment in sectors sensitive to financing costs.
ASX Retreats from Record Highs:
The ASX 200 fell from record highs, dragged down by weakness in tech and financials. Softer data also weighed on sentiment.
Nikkei 225 Dives:
Japan's Nikkei 225 retreated, pressured by a recent strengthening of the Yen and mixed corporate earnings results.
Hang Seng and Shanghai Comp Wobble:
China's Hang Seng and Shanghai Composite indexes experienced a volatile session, initially buoyed by positive manufacturing data and policy support pledges. However, gains were capped by a significant liquidity drain by the PBoC, leading the Shanghai Composite to finish lower.
Europe Set for Flat Open:
European equity futures point to a cautious start for the European markets, with the Euro Stoxx 50 futures down slightly after the cash market closed 0.3% lower on Wednesday.
Forex:
USD: DXY traded sideways near 103.50 after Fed meeting, despite mixed signals on future rate cuts.
GBP: GBP/USD stalls near 1.2700, focus shifts to BoE meeting.
JPY: USD/JPY subdued below 147.00 on risk aversion, narrowing yield spreads.
AUD: AUD/USD indecisive, hit by surprise Australian building approvals slump.
CNY: PBoC sets USD/CNY mid-point weaker, Brazil's central bank cuts rates.
Fixed Income:
US Treasuries: 10-year yields ease slightly but hold gains after dovish data, Powell's comments.
Bund: German yields retreat after softer inflation data.
JGBs: 10-year yields rise after strong JGB auction, BoJ buying wanes.
Commodities:
Crude Oil: Prices recover slightly after losses on risk aversion, surprise inventory build.
Copper: Copper futures subdued after weak US data, Fed reaction.
Key events to watch:
EZ & Italian CPI: Inflation data will influence the ECB's monetary policy decisions.
Central Bank announcements: Riksbank, BoE, and BoC policy announcements could impact their respective currencies and risk sentiment.
Central bank commentary: Statements from ECB's Lagarde & Lane, BoC's Macklem & Rogers, and BoE's Bailey will be closely scrutinized for policy clues.
Bond auctions: Supply from Spain and France could affect fixed income markets.
Earnings season: Key reports from major companies like Apple, Merck, Amazon, and Meta will offer insights into various sectors.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Comments