08:04 February 2, 2024
- Wall Street indices rose yesterday, accounting for much of the post-FOMC losses. The S&P 500 rose by 1.25%, the Dow Jones by 0.97%, the Nasdaq by 1.30% and the Russell 2000 small cap index by almost 1.4%.
- US index futures continued to rise after the close, driven by strong results from Amazon and Meta Platforms
- Asia Pacific indices traded mostly higher following a positive session on Wall Street. The S&P/ASX 200 increased by 1.5% Kospi traded 1.2% higher and the Nifty 50 rose by 1.8%. The Nikkei traded 0.3% higher.
- Indices from China are regional laggards today, with some of the country’s major indices falling 2-3%. Interestingly, there was no news to justify this decline
- European index futures point to a higher opening of the Old Continent’s cash session today
- US officials said the decision to respond to the recent drone strike was made in Jordan and that US forces are preparing to strike targets in Syria and Iraq
- Qatari officials said no ceasefire has yet been agreed between Israel and Hamas, despite conflicting media reports. Al Jazeera tweeted yesterday that Israel had agreed to a ceasefire proposal, but that tweet was quickly deleted
- Societe Generale expects the Bank of Japan to end the period of negative interest rates and raise the key interest rate to 0.00% at the March meeting
- Bank of America now expects the Federal Reserve to begin cutting interest rates in June
- South Korea’s CPI inflation was 2.8% y/y in January (expected: 2.9%), reaching the lowest price growth since July 2023. Core inflation slowed to 2.5% y/y from 2.8% and reached the lowest rate since December 2021.
- Australian PPI inflation for Q4 2023 at 0.9% quarter-on-quarter (expected: 1.9%)
- Cryptocurrencies are trading higher this morning – Bitcoin gains 0.6%, Ethereum is trading 0.5% higher and Dogecoin rises by 0.7%
- Energy raw materials are increasing – oil increases by 0.3%, US natgas prices by 0.8%
- Precious metals trade little changed – gold stays unchanged, Silver falls by 0.1% and platinum gains 0.1%
- AUD and NZD are the best performing G10 currencies, while CHF and JPY are the laggards
S&P 500 futures (US500) have fully recovered from the post-FOMC slump and have managed to hit new all-time highs above the 4,955 mark. Quell: xStation5 from XTB
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