Morning wrap (12.01.2024)

• The last session in APAC markets this week brought mixed investor sentiment. Relatively large gains were seen on Japan's Nikkei, which rallied 1.5%. Nearly 1% gains were also recorded by Indian indices. However, markets in South Korea were trading under downward pressure. 
• China's December foreign trade data showed year-on-year increases in exports and imports. China's CNY-denominated exports in 2023 were +0.6% y/y, while imports were -0.3% y/y. The decline in CPI inflation in December was -0.3% y/y versus expectations of -0.4%.
• In Asia this weekend, attention will focus on the presidential election in Taiwan, which could change the distribution of geopolitical influence among the major powers.
• In the U.S. on Monday, January 15, stock markets will be closed due to the Martin Luther King holiday.
• In the Middle East, the geopolitical situation remains tense throughout. The media reported yesterday on the bombing of the U.S. embassy in Iraq and the continuation of air strikes by the U.S. and British air forces against Houthi targets. Crude oil is currently gaining more than 1% (both Brent and WTI) in the face of this news.
• NATGAS is gaining nearly 1.5% today, extending the gains triggered by yesterday's lower reading of EIA inventory data. 
• In the currency market, the Antipodean currencies are currently doing best. The Swiss franc in particular is quoted under heavy downward pressure.  The EURUSD pair remains slightly below the 1.1000 zone, and the pair is slightly above the 145.0000 zone.
• Futures for European indices are trading higher - the DE30 is gaining 0.1%, and the UK100 is trading 0.2% higher
• Cryptocurrencies are trading in a mixed mood - Bitcoin loses 0.1%, and Ethereum gains 0.21%. Altcoins continue to show strong upward momentum.
• Precious metals are trading higher on an intraday basis, with gold gaining 0.4% and silver rising 0.6%.

Attacks in the Middle East and the uncertain shipping situation in that zone are supporting Brent crude oil prices today, which is trying to test the upper limit of the consolidation at $74 per barrel.

Source: xStation