February 12, 2024 (MLN): Trading in Asia was subdued as a multitude of markets closed for the Lunar New Year, including Japan, China, Hong Kong, Singapore, Taiwan, South Korea, Malaysia, and Vietnam.
Meanwhile, India's focus includes the inflation and industrial output dataset scheduled for release on Monday.
European equity futures edged higher following Friday’s gains in US shares amid optimism over eventual Federal Reserve interest-rate cuts, as Bloomberg reported.
Contracts for the Euro Stoxx 50 show the benchmark is poised to extend its advance after finishing Friday with a third weekly gain.
The S&P 500 closed above 5,000 last week for the first time amid a renewed rally in big tech companies.
Equities in Australia, New Zealand, India, and the Philippines drifted lower amid a lack of leads in the region.
US futures were little changed with investors preparing for US inflation numbers due Tuesday that will help identify the path forward for the Fed.
Australian and New Zealand bonds fell, roughly mirroring declines in Treasuries on Friday that added two basis points to the 10-year yield. Trading of cash Treasuries is closed in Asia due to the holiday in Japan.
The yen held near a two-month low reached on Friday following comments from central bankers that the Bank of Japan will take its time raising rates.
Japan’s currency has weakened against all its Group-of-10 peers this year.
Bitcoin was little changed after earlier edging up toward $49,000, a level last seen in mid-January when a number of US spot exchange-traded funds began trading.
The annual US inflation rate is forecast to have dropped to 2.9% in January from 3.4% the prior month, according to consensus estimates of economists surveyed by Bloomberg. That would be the first reading below 3% since March 2021.
“High inflation rarely has been tamed without precipitating a recession,” Ed Yardeni, president of Yardeni Research Inc., wrote in a research note.
“The Fed has steered inflation down toward its 2% target, while allowing the US economy to fly, avoiding a hard landing.”
Diana Mousina, Deputy Chief Economist at AMP, discusses her key focuses and investment outlook for global markets and economies. She speaks with Haidi Stroud-Watts on “Daybreak Australia”.
The S&P 500 rose 0.6% on Friday to set a fresh record, while the Nasdaq 100 jumped 1%. The gains were helped by technology stocks and positive fourth-quarter earnings.
Four in five of the companies that have reported their results so far have exceeded expectations, brightening the outlook for corporate profits.
The advance for US stocks came even as traders pushed back expectations for Fed policy easing after relatively hawkish commentary from central bankers and economic data showing no immediate need to trim interest rates.
Swaps market pricing shows investors anticipate the chance of a Fed cut in March at 15%, down from 65% a month ago.
Traders now foresee four 25-basis-point rate cuts in 2024, down from seven forecast at the end of last year.
In commodities, oil prices fell for the first time in six days after Iran’s foreign minister said the war in Gaza may be nearer to a “diplomatic solution.”
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Posted on: 2024-02-12T10:42:19+05:00
