-
Asia-Pacific indices are trading mixed. Chinese indices are gaining between 0.90-1.20%. Meanwhile, Japan's Nikkei 225 index is down 0.65% to 38,060 points, while Singapore's SG20cash futures are up 0.07%.
-
On the forex market, the Japanese yen and New Zealand dollar are the biggest gainers in the first part of the day, following the RBNZ's decision on interest rates. The US dollar is consolidating with no significant changes, while the USD/JPY pair is down 0.55% to 152.2000.
-
The New Zealand dollar is performing strongly today despite the Reserve Bank of New Zealand (RBNZ) cutting the official cash rate by 50 basis points to 4.25%, as expected. The bank also indicated another 50 basis point cut would follow in February.
-
This may reflect investor surprise at the less aggressive pace of rate cuts, as there had been speculation about a 75-basis-point cut prior to the announcement.
-
Moreover, RBNZ Governor Adrian Orr warned that high international borrowing costs mean mortgage holders may need to adjust their expectations regarding exceptionally low interest rates. During the press conference, Orr addressed the misconception that RBNZ’s forecasts suggest a slower pace of rate cuts.
-
He emphasized that the RBNZ's projections are consistent with previous assumptions. Orr also noted expectations of greater price volatility due to geopolitical factors, indirectly referencing Donald Trump’s tariff policies.
-
Gold is up 0.45% in the first half of the day, trading at $2,645 per ounce, while silver is 0.62% higher, trading at $30.60 per ounce.
-
WTI crude oil is down 0.30% today to $68.70 per barrel.
-
US President Joe Biden has announced that a ceasefire has been agreed to end 13 months of fighting between Israel and Hezbollah in Lebanon. The fighting on the Lebanese-Israeli border will end from 04:00 local time tomorrow (02:00 GMT on Wednesday). Biden stressed that this will be a permanent cessation of hostilities.
-
Despite this, Israeli Prime Minister Benjamin Netanyahu said that Israel would not hesitate to respond to a possible breach of even part of the agreement by Hezbollah.
-
On the cryptocurrency market, there is a slight rebound following yesterday’s sharp declines. Bitcoin is up 1.35% to $93,200, while Ethereum is seeing stronger gains, up 3.00% to $3,425. The current correction from Bitcoin's peak is already close to 10% at its lowest point.
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.
