- Asian stock markets are relatively buoyant this morning, with most indices holding steady after US stocks continued their rally on Friday. The Nikkei 225 is up 1.2% today, the China A50 is up 0.66%, and the KOSPI is up 0.52%.
- US lawmakers have until September 30 to pass a funding bill to prevent a government shutdown.
- There is also a lot going on in terms of geopolitics. Estonia invoked NATO's Article 4 after three Russian MiG-31 fighter jets entered its airspace on Friday, and Germany scrambled fighter jets to track a Russian aircraft over the Baltic Sea over the weekend.
- The yen is one of the worst performing currencies this morning as the balance of risks shifts from relatively hawkish surprises regarding the BoJ's latest decision to nervousness about the presidential election in Japan. The USD/JPY exchange rate exceeded 148.35. At the same time, the Antipodean currencies and the US dollar are recording the largest gains.
- The positive sentiment on currencies such as the AUD is mainly due to hawkish comments by Governor Bullock, who warned that the economic outlook remains uncertain and that there may be excess demand in the economy, which could be driven by better-than-expected labor market data.
- Moody's rating agency has confirmed Poland's credit rating at an unchanged level of A2/P-1 for long-term and short-term liabilities, respectively, but at the same time changed the outlook from stable to negative.
- The decision to change the outlook to negative reflects a weaker outlook for fiscal indicators and public debt compared to previous expectations. The agency also forecasts significantly higher budget deficits for the general government sector and a delay in gradual fiscal consolidation. The risk stems primarily from the impasse between the government and the president and the likelihood of increased government spending ahead of the 2027 parliamentary elections and beyond.
- In China, the People's Bank of China kept its benchmark interest rates unchanged for the fourth month in a row, leaving the one-year base rate at 3.0% and the five-year rate at 3.5%.
- In the commodities market, we are seeing significant increases in the prices of SILVER (+1.5%) and OIL.WTI (+0.77%). At the same time, NATGAS is not showing any particular trading direction. GOLD is up 0.35% today.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
