US indices finished yesterday’s trading higher. S&P 500 gained 0.62% to 4,294 points, Dow Jones moved 0.50% higher to 33,833 points and Nasdaq 100 added 1.27% to 14,484 points. The Russell 2000 dropped 0.41%, as investors were taking profits after a good session the day before.
Asian stock markets are poised for their second consecutive week of gains, buoyed by the prospect of economic stimulus in China and the S&P 500’s transition into a bull market.
Japanese markets bounced back from a two-day downturn – Nikkei climbed 1.66% to 32,174 points and Australian stocks also rebounded after a three-day decline – S&P/ASX 200 dropped 0.11%.
South Korean stocks have hit their highest point since June of the previous year – Kospi gained 1.25%.
Indices from China decreased by around 0.25%
European futures point to a flat opening of the European cash session today, DAX futures are traded 0.06% lower at 16,014 points.
The Chinese Consumer Price Index (CPI) Year on Year (YoY) remained as expected at 0.2%, while the Producer Price Index (PPI) YoY fell to -4.6%, lower than the forecasted -4.3%.
The Bank of Japan’s Governor Ueda stated that the bank is implementing policies to achieve a stable 2% inflation rate.
A spike in US unemployment claims to the highest level since October 2021 indicates a softening labor market, which lowered the expectations that the Federal Reserve would keep interest rates elevated for a prolonged period.
Despite the S&P 500’s return to a bull market, an analyst from Bank of America has stated that the overall market sentiment remains pessimistic.
Analysts at Bank of America believe that as long as inflation remains high globally and particularly in the US, the EURUSD is likely to remain weak. Currently, the carry trade is also applying downward pressure on the euro.
Saudi Arabia reportedly threatened the US with economic repercussions last fall due to oil price reductions, according to the Washington Post.
Precious metals trade mixed – gold trades flat, silver gains 0.15%, platinum gains 1.25% and palladium jumps 0.18%
Binance.US has halted USD deposits and warned of a potential pause in fiat withdrawals in response to the “extremely aggressive and intimidating tactics” employed by the SEC and intended to safeguard customers and the platform.
EURUSD chart – according to BoA a sustained rally in EURUSD would necessitate a change in the Federal Reserve’s stance, Interval H1, source xStation 5
