Global Markets:
- Asian Stock Markets : Nikkei down 0.80%, Shanghai Composite down 0.31%, Hang Seng up 0.79% ASX up 1.65%
- Commodities : Gold at $2049.5 (2.17%), Silver at $24.19 (5.34%), Brent Oil at $74.56 (0.42%), WTI Oil at $69.07 (0.53%)
- Rates : US 10-year yield at 3.946, UK 10-year yield at 3.884, Germany 10-year yield at 2.156
News & Data:
- (USD) Core PPI m/m 0.0% vs 0.2% expected
- (USD) PPI m/m 0.0% vs 0.0% expected
- (USD) Federal Funds Rate 5.5% vs 5.5% expected
Markets Update:
The Asia-Pacific equity markets surged as the U.S. Federal Reserve signaled an end to its interest-rate hikes and hinted at upcoming cuts. Hong Kong’s Hang Seng index led the rally with a 0.79% rise, joined by China’s CSI 300 index, which saw marginal gains.
The Fed revised down its inflation forecast, predicting the core personal consumption expenditures price index to be 2.4% in 2024 and 2.2% in 2025, lower than previous estimates. Australia’s S&P/ASX 200 climbed 1.65%, hitting levels unseen since August 1.
Japan’s Nikkei 225 initially rose but later fell by 0.80%, while the Topix slipped 1.33% amid anticipation for the Bank of Japan’s upcoming policy decision. South Korea’s Kospi surged by 1.24%, and the smaller-cap Kosdaq added 1.15%.
In the U.S., the Dow Jones Industrial Average and the S&P 500 hit record highs, with the Dow rising by 1.4% and crossing the 37,000 level for the first time. The S&P 500 surged by 1.37%, surpassing the 4,700 milestone, while the Nasdaq Composite climbed 1.38%. All three indices reached fresh 52-week highs.
Upcoming Events:
- 12:00 PM GMT – GBP Official Bank Rate
- 1:15 PM GMT – EUR Main Refinancing Rate
- 1:30 PM GMT – USD Core Retail Sales m/m
- 1:30 PM GMT – USD Retail Sales m/m
- 1:30 PM GMT – USD Unemployment Claims
- 1:45 PM GMT – EUR ECB Press Conference
