Morning wrap (08.01.2025)

Asia-Pacific indices trade in moderate sentiment despite yesterday's sell-off in the U.S. markets and cryptocurrencies. Chinese indices show no clear direction today: CHN.cash and HK.cash are down 0.40%, while CH50cash gains 0.15%.

The Japanese stock market shows slight growth, with the JP225 index rising 0.50% to 40,000 points. Singapore's SG20cash index gains 1.50%, while Australia's AU200cash slips 0.15%.

European index futures also point to a higher opening for the cash session. Germany's DAX index gains 0.10%, the UK's UK100 is up 0.15%, and the European EU50 rises 0.15%.

On the forex market, movements are limited in the first part of the day. The USD sees a minor 0.10% pullback after yesterday's sharp gains. The Japanese yen is losing even more, dropping between 0.2-0.3%. The USDJPY pair is up 0.05% to 158.0000. Among gainers, the Canadian dollar stands out, appreciating around 0.1-0.3% against other currencies.

The key release today will be the ADP report on the U.S. labor market.

Japan's seasonally adjusted Consumer Confidence Index for December came in at 36.2, slightly below the previous month's 36.4 and missing analysts' expectations.

Australia's monthly inflation rate rose to 2.3% in November (previously 2.1%), slightly above the expected 2.2%. Despite the marginally higher reading, inflation in Australia remains at the upper boundary of the Reserve Bank of Australia's (RBA) target range, sustaining hopes for a rate cut as early as February.

The U.S. Department of Defense announced yesterday that it has added Chinese tech giant Tencent Holdings and battery producer CATL to its list of companies it claims are collaborating with China's military. This move may escalate U.S.-China tensions further.

WTI crude oil continues to recover, gaining 0.40% today to $74.75 per barrel.

In the cryptocurrency market, weak sentiment persists. Yesterday's selloff was triggered by better-than-expected ISM data from the U.S., particularly the record-high price subindex. As a result, the cryptocurrency market experienced cascading liquidations of long positions, which were dominant due to Bitcoin breaking above the $100,000 threshold again.