Morning Wrap (28.02.2024)

Wall Street indices ended yesterday's session with slight gains - S&P 500 and Nasdaq 100 contracts were up between 0.10-0.20%. US500 contracts closed around 5080 points.

Most Asia-Pacific indices are recording a weaker session - Japan's Nikkei is down 0.10%, Australia's S&P/ASX 200 is 0.35% lower, and Chinese indices are losing between 1.10-1.60%.

Futures contracts for European indices also indicate a slightly lower opening for the cash session on the Old Continent.

In the forex market, there are no major changes in the first part of the day except for the Australian dollar (NZD), which is losing between 0.80-1.00% against most currencies following the Reserve Bank of New Zealand's (RBNZ) interest rate decision.

The Reserve Bank of New Zealand kept interest rates unchanged at 5.50%.

The decision matched the expectations of 22 out of 24 economists surveyed by Bloomberg. New forecasts from the bank indicate less chance of a rate hike this year, but no cuts until 2025.

At a press conference, Bank Chairman Adrian Orr said further hikes were discussed among board members. However, the board ultimately reached a firm consensus that the current level of interest rates is sufficient. Domestic inflation remains high, but prices are falling at the expected pace.

Adrian Orr noted that central banks might maintain interest rates at peak levels longer than financial markets expect. However, the base scenario is a soft landing for economies.

Eleven Chinese naval ships were detected near Taiwan, Taipei's defense ministry reported on Wednesday. This is another move by the Chinese military this year.

Barclays raised its target price for the S&P 500 index by the end of 2024 to 5300 points from the previous 4800 points.

Problems in the Chinese real estate market continue. Today, Chinese developer Country Garden Holdings announced that a liquidation petition has been filed against it. The proceedings are due to the non-repayment of a $205 million loan. The company disagrees with the petition filed by the creditor, Ever Credit Limited.

Cryptocurrencies continue to rise. Bitcoin remains above $57,000, gaining 0.15%, while Ethereum gains 0.45% to $3260 USD. Smaller projects are currently experiencing a pullback, with the total cryptocurrency capitalization excluding BTC and ETH flat at a value of $574 billion USD.