Global Markets:
- Asian Stock Markets : Nikkei up 0.43%, Shanghai Composite up 1.23%, Hang Seng up 0.96% ASX down 0.11%
- Commodities : Gold at $2886.35 (0.23%), Silver at $32.75 (0.38%), Brent Oil at $74.69 (0.59%), WTI Oil at $70.94 (0.43%)
- Rates : US 10-year yield at 4.449, UK 10-year yield at 4.482, Germany 10-year yield at 2.372
News & Data:
- (GBP) Official Bank Rate 4.50% vs 4.50% expected
- (USD) Unemployment Claims 219K vs 214K expected
Markets Update:
Asia-Pacific markets were mixed on Friday as investors analyzed India’s interest rate decision and Japan’s household spending data. Australia’s S&P/ASX 200 traded flat, while Japan’s Nikkei 225 fell 0.44% and the Topix declined 0.39%. However, Japan’s household spending in December surged 2.7% year-on-year, significantly exceeding expectations of a 0.2% rise. South Korea’s Kospi slipped 0.17%, while the Kosdaq remained near the flatline. Hong Kong’s Hang Seng Index gained 0.6%, and China’s CSI 300 advanced 0.77%.
The Reserve Bank of India (RBI) cut its key interest rate for the first time in nearly five years, reducing the repo rate by 25 basis points to 6.25% to stimulate economic growth. India’s benchmark stock indexes, Nifty 50 and Sensex, remained flat, while the rupee slightly strengthened to 87.4 against the dollar after reaching an all-time low. RBI Governor Sanjay Malhotra announced the decision in a livestreamed address, highlighting cooling inflation as a factor in the rate cut.
In the U.S., major stock indexes closed higher on Thursday as investors assessed corporate earnings. The S&P 500 rose 0.36% to 6,083.57, while the Nasdaq Composite gained 0.51% to 19,791.99. However, the Dow Jones Industrial Average fell 125.65 points (0.28%) to 44,747.63. The S&P 500 notched its third consecutive positive session, signaling investor optimism despite mixed economic signals.
Markets are now focused on the U.S. jobs report, set for release on Friday. Economists surveyed by Dow Jones anticipate 169,000 new jobs in January, a decline from December’s 256,000. The report is expected to provide insights into labor market trends and influence future Federal Reserve policy decisions.
Upcoming Events:
- 01:30 PM GMT – CAD Unemployment Rate
- 01:30 PM GMT – CAD Employment Change
- 01:30 PM GMT – USD Average Hourly Earnings m/m
- 01:30 PM GMT – USD Non-Farm Employment Change
- 01:30 PM GMT – USD Unemployment Rate
