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Markets Update: APAC markets displayed cautious optimism based on easing global yields and Chinese support. However, mixed performances in key indices like Hang Seng and Shanghai Comp highlight the underlying uncertainties, making the upcoming data and central bank commentary crucial for further market direction.
Economic Calendar
Global Markets Roundup: 07 Feb 2024
APAC markets closed mostly positive on Wednesday, buoyed by a decline in global yields and continued support efforts from China. However, the Hang Seng and Shanghai Composite indices ended mixed despite early gains.
Key events:
Moody's downgraded New York Community Bancorp (NYCB) to "junk" status, raising concerns about potential risks in the US financial sector.
St. Louis Fed President Bullard, a voting member, reiterated optimism about a potential rate cut later this year if the economy performs as expected, favoring a gradual approach.
ECB's Schnabel cautioned against lowering borrowing costs too quickly, highlighting the risk of reigniting inflation.
Market movers:
APAC stocks mostly gained, with the ASX 200 closing up 0.2% and Nikkei 225 rising 0.3%.
Hang Seng ended slightly lower (0.1%), despite early momentum.
Shanghai Composite edged down 0.02%, reflecting a more cautious trading session.
Nikkei 225 navigated uncertainty on Wednesday, caught between a wave of corporate earnings reports and speculation about a potential Bank of Japan (BoJ) policy shift by April.
European equity futures signaled a slightly positive start for the region, with the Euro Stoxx 50 future inching up 0.1%. This follows a 0.8% gain for the cash market on Tuesday.
FX:
DXY Index remained muted after recent declines, reflecting softer yields and resurfacing banking concerns.
EUR/USD stabilized after recovering from year-to-date lows, but stayed below its nearby 100-day moving average.
GBP/USD continued its gradual climb, reclaiming the 1.2600 level.
USD/JPY attempted to regain the 148.00 mark, facing headwinds from narrowing yield differentials.
AUD and NZD edged higher in a mostly positive risk environment, with NZD/USD briefly supported by stronger jobs data.
Fixed Income:
10-year UST futures held ground after yesterday's gains, as data-light US markets saw renewed banking anxieties.
Bund futures paused after their recent rebound, awaiting German Industrial Production data.
10-year JGB futures remained rangebound, stalling near the 146.50 level after a mixed 30-year JGB auction.
Commodities:
Crude oil futures inched higher, but gains were capped by mixed private inventory data and positive geopolitical updates.
OPEC executive predicted global oil demand to expand by 2.2 million barrels per day in 2024, tapering to 1.8 million in 2025.
Spot gold traded sideways, holding modest gains from the previous day's USD weakness.
Copper futures remained rangebound, failing to capitalize on the improved risk sentiment.
Looking ahead:
Key data releases include German Industrial Output, UK Halifax House Prices, and US Trade Data.
Central bank pronouncements from NBP and Fed officials (Breeden, Kugler, Barkin, Collins & Bowman) are expected.
Earnings releases from TotalEnergies, Pandora, Carlsberg, Siemens Energy, Equinor, Uber & PayPal are scheduled.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team