Global Markets:
- Asian Stock Markets : Nikkei up 1.32%, Shanghai Composite down 0.44%, Hang Seng down 0.9% ASX up 0.84%
- Commodities : Gold at $2037.5 (-0.17%), Silver at $24.13 (0.04%), Brent Oil at $78.06 (0.12%), WTI Oil at $72.77 (0.03%)
- Rates : US 10-year yield at 3.946, UK 10-year yield at 3.724, Germany 10-year yield at 2.076
News & Data:
- (CAD) NHPI m/m -0.2% vs 0.1% expected
- (USD) NAHB Housing Market Index 37 vs 36 expected
Markets Update:
The Nikkei 225 index surged by over 1% in response to the Bank of Japan’s decision to maintain its main policy rate at -0.1%. The central bank opted to uphold both its negative interest rate policy and yield curve control stance while expressing concerns about uncertainties within Japan. Predicting core inflation to stay above 2% through fiscal 2024, the BOJ’s decision prompted a 0.5% weakening of the yen against the dollar, settling at 143.50.
Shigeto Nagai, head of Japan Economics at Oxford Economics, foresees the BoJ potentially ending the negative interest rate policy by April, contingent on a robust spring wage settlement. However, post-NIRP cessation, the BoJ is expected to maintain an effective zero-interest rate policy for several years, shaping the inflation trajectory.
The Reserve Bank of Australia debated a 25 basis point rate hike but ultimately held rates steady at 4.35%. Australia’s S&P/ASX 200 rebounded to 7,489.10, recovering after a six-day winning streak interruption.
In Asia, South Korea’s Kospi remained stable, while the Kosdaq surged 0.69%, marking its highest level since September 22. Conversely, Hong Kong’s Hang Seng index fell 0.9%, and mainland China’s CSI 300 held steady.
Overnight in the US, the S&P 500 and Nasdaq Composite gained 0.45% and 0.61% respectively, while the Dow Jones Industrial Average saw little change. Presently, the S&P 500 stands just 1.2% below its all-time high set in January 2022 at 4,796.56.
Upcoming Events:
- 1:30 PM GMT – CAD CPI m/m
- 1:30 PM GMT – CAD Median CPI y/y
- 1:30 PM GMT – CAD Trimmed CPI y/y
- 1:30 PM GMT – CAD Common CPI y/y
- 1:30 PM GMT – CAD Core CPI m/m
- 1:30 PM GMT – USD Building Permits
- 1:30 PM GMT – USD Housing Starts
