Economic Indicators & Central Banks:
- Chinese stocks climbed slightly as China returned from the long New Year holidays. Modest gains showed that investors are worried about the longterm outlook. Much of the economy’s sluggishness is a function of the collapse in the property sector as well as the bearish effects of the many regulatory restrictions in tech, problems that would not be helped much by easier policy.
- US markets are closed for the Presidents’ Day holiday.
- This week: Eyes on European inflation data, PMI data from EU, UK and US, RBA & FOMC Minutes, as well as earnings from Nvidia Corp. and BHP Group Ltd to help gauge the health of the global economy.
Market Trends:
- Nikkei (JPN225) holds near 1989 highs, pressured by Friday’s selloff but also due to decline in chip-related shares. Nintendo was the biggest percentage decliner though, slumping 5.8%. Chip-sector heavyweights Advantest and Tokyo Electron were the Nikkei’s biggest drags, shaving off 60 and 55 index points respectively with declines of 3.2% and 1.6%.
- European stock futures are in the red, US futures fractionally higher on what is likely to be a quiet day, as US markets are closed.
- S&P500(USA500) rose 0.1%, Nasdaq (USA100) rose 0.2%.
Financial Markets Performance:
- The USDIndex’s gains faded after the hot inflation stats crushed expectations for quick and deep Fed rate cuts. Currently at 104.
- The Yen is directionless, with USDJPY sideways close to 150 with volumes likely to be low through the day. The drag from higher US bond yields, particularly on tech stocks, is offsetting support from a weak yen.
- USOIL pulled back from $78 highs on the ongoing Middle East tension. The IEA signaled last week that oil markets could be oversupplied all year, and China’s soft economy has raised questions about consumption. Still, attacks on shipping in the Red Sea and the Israel-Hamas war are keeping prices from falling too far.
- Gold extends Friday’s gains, above $2020.
- Bitcoin at $52514.
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Andria Pichidi
Market Analyst
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