Following an unexpected reduction in July, the People’s Bank of China maintained its benchmark loan prime rate steady, causing Asian stocks to trade mostly higher ex China, which saw a decline of 0.5%. The MSCI ACWI Index, which encompasses both emerging and mature equities, is poised to extend its winning streak to nine consecutive days, the longest since December. Japan’s Nikkei share average rose in tandem with Wall Street on Tuesday, overcoming the impact of the yen’s recent gains, as an optimistic U.S. economic outlook continued to bolster risk appetite globally. The Nikkei regained the 38k handle, recovering from the previous session’s losses after the yen’s appreciation weighed on Japanese equities.To assess the timing and speed of interest rate cuts, investors also evaluated the minutes from the Reserve Bank of Australia’s August meeting. Investors await the release of FOMC meeting minutes and Fed Chair Jerome Powell’s Jackson Hole speech. The assumption that the Federal Reserve will soon announce it is ready to start decreasing interest rates caused the dollar to hold close to a seven-month low and Treasury yields to decline. The US Federal Reserve is anticipated to lower interest rates by 25 basis points at each of the next three sessions in 2024, as concerns about a recession subside. The price of gold in Asian trading remained above $2,500 per ounce. Oil continued to decline after dropping by roughly 2% on Monday due to ongoing concerns about Chinese demand and Israel’s acceptance of a proposal to resolve differences preventing a ceasefire accord in Gaza.In its policy announcement on Tuesday, the central bank of Sweden is predicted to decrease interest rates by a quarter of a percentage point. Two further rate cuts are anticipated by analysts before the year ends. Data on inflation for July will be released by Canada, and it is expected to decline from 2.7% in June to 2.5% yearly, which will support the case for more rate reductions by the Bank of Canada.
Overnight Newswire Updates of Note
(Sourced from reliable financial news outlets)
FX Options Expiries For 10am New York Cut (1BLN+ represents larger expiries, more magnetic when trading within daily ATR)
CFTC Data As Of 16/8/24
Technical & Trade ViewsSP500 Bullish Above Bearish Below 5550
EURUSD Bullish Above Bearish Below 1.0960
GBPUSD Bullish Above Bearish Below 1.29
USDJPY Bullish Above Bearish Below 149
XAUUSD Bullish Above Bearish Below 2480
BTCUSD Bullish Above Bearish Below 58000
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