- Stock markets in the Asia-Pacific region mostly declined: Japan's Nikkei 225 fell 0.12%, Hong Kong's Hang Seng fell 0.45%, the Shanghai Composite remained virtually unchanged, and Australia's S&P/ASX 200 recorded a slight decline.
- At the same time, futures contracts based on European and American indices indicate moderate declines, which are, however, more visible in European futures than in their American counterparts.
- Data from the Antipodes showed mixed signals from the economy: New Zealand's producer price index (PPI) came in below expectations, while wage growth in Australia was in line with forecasts, showing moderate growth but with some weakening in private sector wage dynamics.
- Currencies have performed differently in an atmosphere of risk aversion, with the Australian dollar (AUD) and New Zealand dollar (NZD) currently performing the worst. The market, on the other hand, is currently valuing the yen and the euro highly.
- Japanese Prime Minister Sanae Takaichi announced a stimulus package worth over 20 trillion yen, backed by a large supplementary budget, which created an urgent need for economic policy action.
- Bank of Japan Governor Ueda met with key finance ministers to discuss the economic situation and policy outlook, particularly in light of the sharp decline in the value of the yen.
- Despite rising government bond yields and a short-term strengthening of the yen, tensions returned amid reports that China may reimpose a ban on Japanese seafood imports, causing strain in bilateral relations.
- The United States and Saudi Arabia have announced a series of key agreements covering defence, trade, technology and strategic cooperation. Riyadh intends to purchase around 300 American tanks and, in the future, F-35 fighter jets, which is expected to strengthen the American arms industry and security ties between the countries. The two countries have also signed agreements on nuclear cooperation, critical raw materials and artificial intelligence, expanding their economic and technological partnership.
- President Trump has suggested that he has probably already chosen his candidate for Federal Reserve chair, although he has not revealed the name. Treasury Secretary Scott Bessent is interviewing candidates and is expected to present the finalists to Trump shortly. Among the potential successors to Jerome Powell are National Economic Council Director Kevin Hassett and former Fed board member Kevin Warsh.
- OIL.WTI is down 0.2% today after yesterday's API survey data showed a larger-than-expected increase in US crude oil inventories.
- Precious metals are regaining ground today, rebounding strongly this morning. GOLD prices are up 0.67%, while SILVER is adding 1.42%.
- However, the same cannot be said about cryptocurrencies, where we are seeing a return to declines. Bitcoin is once again testing the psychological barrier of USD 90,000, after yesterday's decline, the cryptocurrency managed to break out upwards in a sustainable manner.
- What to pay special attention to during today's session? Market participants will be closely watching Nvidia's financial results for clues about the technology sector, UK CPI inflation data and signals about monetary policy from bankers' comments, as well as the minutes from the latest FOMC meeting in the United States.
- Investors may also monitor any developments regarding Japan's progress on economic stimulus and geopolitical news related to Ukraine as potential risk factors affecting global market sentiment.
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