Asian equities experienced a slight decline for the second consecutive day as talks on raising the US debt ceiling reached an impasse, negatively affecting risk sentiment. The Chinese CHNComp and HKComp declined by 0.3%, while the Japanese Nikkei225 rejected record levels and fell by 0.28% to 30,780 points. The KOSP200 traded sideways with a modest change of 0.09%, and the AUS200 was down by 0.14%.
Yesterday's session on Wall Street ended with declines, and it is likely that this sentiment will continue today as US leaders failed to reach a conclusion in debt ceiling negotiations.
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Create account Try a demo Download mobile app Download mobile appThe negative performance in Asian markets and the previous close on Wall Street may impact risk sentiment during the European session. Currently, futures indicate a slightly higher opening for the German DAX and EURO STOXX 50 Index.
The Bank of New Zealand after today’s Monetary Policy Statement and OCR decision. The Official Cash Rate was raised by 0.25% to 5.50% - in line with estimates. However, the NZ Central Bank suggested the end of the tightening cycle and potential reduction could start in late 2024.
As a result bond yields in New Zealand declined and the currency depreciated. The NZDUSD pair dropped over 1.3%.
RBNZ's Governor Adrian Orr said that he foreshadows the country's monetary policy will remain tight for some time and wants to see deposit rates rise further. He also said that the newest data is finally satisfactory after a long battle.
After the RBNZ Minutes the committee was satisfied with the OCR's project forward path and expects inflation to return to its target range of 1-3% by Q3 of 2024.
The UK inflation data will be closely watched, with expectations of a decline in headline annual inflation in April. Core annual inflation is expected to remain high, putting pressure on the Bank of England
Gold and silver prices rebounded modestly by approximately 0.2%.
Cryptocurrencies are experiencing a setback after yesterday's rise, and BTC has returned to the range of 26.8k. BTC and ETH decline 1.6%.
The NZDUSD pair dropped sharply after RBNZ minutes in reaction to the end of the tightening cycle. Currently, the pair is down 1.33% to 0.6164 approaching its 200-day moving average on D1 chart.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.
