Economic Indicators & Central Banks:
- China: Reports that Chinese officials are looking into a rescue package for the beleaguered stock market has given Asian equities, and particularly the Hang Seng, a big lift. Sources suggest authorities are proposing some $278 bln be invested in onshore funds.
- Japan: The BoJ left policy unchanged, maintaining its -0.100% policy rate and keeping YCC intact, as well expected. BoJ governor Ueda said there is more certainty in the outlook, which saw JGBs paring earlier gains. There were no significant indications on forward guidance. We see more of a dovish lean from the downwards forecasts, with the Bank likely to leave its stance in ultra-accommodative mode until April when the wage talks should be under our belt.
Market Trends:
- Asian stock markets mostly moved higher, with the Hang Seng surging 3% to a session peak of 15,472 before paring gains to 15,345. The CSI rose to 3240 after slumping to a 5 year low of 3218 yesterday. It was at a 2023 peak of 4201 in late January 2023.
- The JPN225 (Nikkei) is up 0.29% to 36,630.
- Stock futures are higher across Europe, but while the US100(NASDAQ) has found buyers, the US30(Dow Jones) is slightly lower but holds above its record high at 38k.
- Microsoft and other tech giants along with Goldman shares, which jumped 1%, have boosted the Dow higher.
Financial Markets Performance:
- The USDIndex slipped to 102.70 from 103.384 and is seeing broadbased declines.
- USDJPY has been choppy, spiking to 148.55 before drifting down to 147.86.
- Oil prices reached $75 again, as US and UK launch new strikes at Iran-backed Houthi rebels in Yemen, adding to the tension in Middle East.
- BTCUSD dropped below $40,000 as the launch of the first US ETF holds the digital currency abated, as investors take profits off the table. Ether, the second-largest cryptocurrency, fell 6% to $2,325.
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Andria Pichidi
Market Analyst
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