Jan 12, 2024: On Friday, traders adjusted their expectations, indicating a higher probability that the Federal Reserve would implement further monetary policy easing in the current year. This shift came after a U.S. government report revealed lower-than-expected inflation in the wholesale pipeline. Futures contracts, tied to the Fed’s target for the overnight lending rate between banks, experienced an uptick following the release of data indicating a 0.1% decline in the producer price index in December compared to the previous month. Economists had initially anticipated a 0.1% increase. The updated futures contract prices now suggest an outlook for rates to drop…
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Jan 12, 2024: Oil prices surged by 4% on Friday as a response to oil tankers altering their routes in the Red Sea. This adjustment came after the United States and Britain conducted air and sea strikes on Houthi targets in Yemen. The strikes were carried out in retaliation for attacks on shipping by the Iran-backed Houthi group. Witnesses in Yemen reported explosions throughout the country. As a result, Brent crude futures experienced a significant increase of $3.16, equivalent to 4.1%, reaching $80.57 per barrel by 1124 GMT. Simultaneously, U.S. West Texas Intermediate crude futures rose by $3.05, representing a…
Jan 12, 2024: European shares opened with gains on Friday, driven by optimism about potential interest rate cuts from the European Central Bank (ECB). Despite heightened tensions in the Middle East, investors focused on ECB President Christine Lagarde’s remarks indicating a willingness to cut interest rates if inflation drops to 2%. The pan-European STOXX 600 was up 0.9%, showing marginal weekly gains. The oil and gas sector saw a 1.0% increase, propelled by a more than 2% surge in crude prices following U.S. and British strikes in Yemen. Airbus shares also climbed 2.2% after the company reported record annual jet…
Jan 12, 2024: Bitcoin exchange-traded funds (ETFs) listed in the U.S. witnessed a trading volume of $4.6 billion as of Thursday afternoon, following their approval by the U.S. Securities and Exchange Commission (SEC) on Wednesday. Eleven spot bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF, commenced trading on Thursday, marking a significant milestone for the cryptocurrency industry. Notable players like Grayscale, BlackRock, and Fidelity dominated the trading volumes, signaling a competitive environment for market share. While the SEC’s approval lifted bitcoin prices to their highest level since December 2021, it emphasized that it…
Jan 12, 2024: Most Asian currencies experienced minimal changes on Friday, and the dollar exhibited little strength as traders continued to anticipate U.S. interest rate cuts in the face of a stronger inflation reading for December. Positive data from China also contributed to the sentiment in the region, with Chinese exports surpassing expectations, and the Consumer Price Index (CPI) inflation slightly increasing in December. The Chinese yuan saw a 0.1% rise, while the Australian dollar, closely tied to China’s trade, gained 0.3%. The Japanese yen strengthened by 0.3%, rebounding after a notable recovery against the dollar on Thursday, with expectations…
Jan 11, 2024: The deceleration in inflation that accelerated toward the end of 2023 has shifted the focus at the U.S. Federal Reserve to the state of the job market. Fed officials are increasingly attentive to the risks of maintaining monetary policy too tight for an extended period. They are closely monitoring signs of stress in business hiring plans and engaging in discussions with local executives about potential layoffs for the year. The shift in attention reflects the Fed’s need to balance controlling inflation with protecting employment, especially as the U.S. presidential election approaches in November. The central question for…
Jan 11, 2024: Bitcoin witnessed an uptick in its value, accompanied by a rise in crypto-related stocks, after the U.S. Securities and Exchange Commission (SEC) granted approval for the first exchange-traded funds (ETFs) tracking the spot price of the digital asset. As of 06:44 ET (11:44 GMT), Bitcoin had surged by 3.0% to $46,929.1. Concurrently, stocks associated with the cryptocurrency, including exchange platform Coinbase (NASDAQ:COIN) and crypto miners Marathon Digital (NASDAQ:MARA), Cipher Mining (NASDAQ:CIFR), and Riot Platforms (NASDAQ:RIOT), experienced positive movements. The SEC’s decision, which approved 11 applications from various issuers, including BlackRock (NYSE:BLK), Fidelity, and Grayscale, is expected to…
Jan 11, 2024: On Thursday, U.S. stocks experienced marginal gains as investors absorbed the nuances of the December Consumer Price Index (CPI) release. The headline figure for U.S. inflation revealed a rise to 3.4% on an annual basis, up from November’s 3.1%, surpassing the anticipated 3.2%. However, the “core” CPI, excluding volatile elements such as food and energy, showed a decline to 3.9%, down from the previous month’s 4.0% but still exceeding the expected 3.8%. While the data presented a warmer inflation picture than anticipated, the focus on the falling core prices suggests that the Federal Reserve is likely to…
Jan 11, 2024: Several Asian currencies recorded modest gains on Thursday, with the U.S. dollar retracing a substantial portion of its early-year advances as investors awaited pivotal U.S. inflation data. The focus on the data is to gather insights into when the Federal Reserve might initiate interest rate cuts. Meanwhile, the Japanese yen, lingering near one-month lows, continued to exhibit fragility as the prevailing market sentiment suggests the Bank of Japan may delay its shift from an ultra-dovish policy. Dollar Steps Back, Eyes on CPI Data for Rate-Cut Signals Both the dollar index and dollar index futures experienced a 0.1%…
Jan 11, 2024: European shares commenced higher on Thursday, driven by optimism ahead of a crucial inflation report in the United States. The report is expected to provide insights into the Federal Reserve’s stance on interest rate cuts, influencing the trajectory for other central banks. As of 8:10 GMT, the pan-European STOXX 600 index showed a 0.6% increase. Investors are eagerly awaiting the U.S. inflation report scheduled for 8:30 a.m. ET (1330 GMT), aiming to gauge the timing of potential interest rate cuts by the Federal Reserve. This information will likely set the tone for other central banks. Reflecting the…
