
Markets Update: APAC Markets Mirror Wall Street and Bitcoin Takes a Hit Despite ETP Launch.
Economic Calendar
Global Markets Roundup: 11 Jan 2023
Adding to the cautious mood, Fed's Williams reiterated the need for continued tightening to curb inflation, with rate cuts only on the horizon when inflation confidently trends towards the 2% target. European equity futures hinted at a positive open, with the Euro Stoxx 50 up 0.6% after a flat session yesterday. Meanwhile, Bitcoin failed to capitalize on the approval of the first spot Bitcoin ETPs, retreating from resistance near USD 47,000. The Dollar (DXY) edged lower against most peers, with USD/JPY clinging to the 145 handle.
ASX 200 Ascends Past 7,500: Australia's benchmark index clawed back above the 7,500 mark, propelled by gains in financials, tech, and consumer stocks. The upbeat mood reflected broad global strength and defied potential jitters ahead of US jobs data later today. Nikkei 225 Blazes Higher: Japan's Nikkei 225 continued its blistering rally, surging beyond the psychologically significant 35,000 level for the first time since February 1990. The ascent was fueled by a weak yen and positive sentiment across global markets. Dual Pace in China: Hong Kong's Hang Seng mirrored the regional upbeat mood, climbing on the back of strong tech and auto sectors. Meanwhile, the mainland's Shanghai Composite displayed a more subdued performance, potentially cautious ahead of potential frictions from Taiwan's upcoming election.
Currencies:
The US Dollar Index (DXY) softened slightly despite strong stock market gains, with investors hesitant ahead of crucial US inflation data. Fed's Williams reiterated a hawkish stance, further capping DXY gains.
EUR/USD edged higher, boosted by outperforming Eurozone yields compared to US Treasuries.
GBP/USD followed suit, climbing above 1.2750 alongside other cyclical currencies.
USD/JPY took a breather after recent risk-driven rallies, but held above 145.00.
AUD and NZD gained traction supported by positive risk sentiment, Chinese Yuan strength, and upbeat Australian trade data.
Fixed Income:
US 10-year Treasury futures lacked direction after a choppy previous session, fluctuating around 112.00 as investors grappled with expected inflation data and a successful US 10-year auction.
German Bund futures remained subdued near recent lows after record weekly supply in Europe.
Japanese 10-year JGB futures rebounded slightly, supported by the softer dollar but limited by the lack of major Japanese data and BoJ inaction.
Commodities:
Crude oil futures attempted to recover from Wednesday's losses triggered by bearish inventory data, with WTI finding support at $71/bbl.
Spot gold edged higher due to a weaker dollar and anticipation of US inflation data.
Copper futures benefited from the overall positive risk sentiment across asset classes.
Data Watch: CPI Takes Center Stage
Investors are primed for tomorrow's US CPI report, which will cast light on the trajectory of inflation and future Fed policy decisions. Other data releases to watch include Spanish and Italian industrial output, the Philly Fed Manufacturing Survey, and supply data from Italy and the US.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team