Morning wrap (18.11.2024)

The Asia-Pacific region indices are mostly trading higher. Chinese indices are gaining between 0.30%-0.60%. The Japanese Nikkei 225 index is up by 0.50% to 38,200 points, while futures on the SG20cash index in Singapore are gaining 0.12%.

In the forex market, changes during the first part of the day are minor. The US dollar index (USDIDX) is losing 0.10% to 106.6000 points. One of the stronger currencies today remains the British pound, gaining around 0.2%.

The Governor of the Bank of Japan, Kazuo Ueda, said during an interview that the country's economy is making progress toward achieving sustainable, wage-driven inflation. However, Ueda did not comment on any potential decision by the BOJ regarding interest rates during next month's meeting. Ueda reiterated the BOJ's readiness to further raise borrowing costs if the economy behaves in line with its forecasts. The governor signaled that domestic conditions for another rate hike are improving.

After Ueda's speech, the Japanese yen weakened slightly but later erased its losses, and USDJPY is currently down 0.10% to 154.4000.

North Korea is reportedly ready to send up to 100,000 soldiers to assist Russia in its war against Ukraine, according to sources familiar with assessments by some Group of 20 (G20) countries.

Goldman Sachs has maintained its target for gold at $3,000 per ounce by December 2025. According to the bank, the main catalysts for growth will remain strong demand from central banks, inflows into exchange-traded funds, and interest rate cuts by the Federal Reserve.

Today, gold is up 1.00% to $2,590, while silver is trading 1.36% higher at $30.6400 per ounce.

Over the weekend, we learned about further appointments to Donald Trump's new administration. Ahead of his return to the White House on January 20, 2025, Trump appointed Florida Congressman Matt Gaetz as his nominee for Attorney General. 

He selected Pete Hegseth, a Fox News host and military veteran, for the position of Secretary of Defense. Controversial RFK Jr. is to become the Secretary of Health, while Marco Rubio appears to be a safer choice for the next Secretary of State.

Donald Trump surprised the world by nominating market-friendly individuals for the cryptocurrency sector and announced work on regulating this market in collaboration with leading projects like Cardano and XRP. Further information is supporting Bitcoin prices, which are up by 1.40% today, maintaining above $91,000.

During the weekend, there was a capital rotation into larger projects within the altcoin market. Projects such as XRP, Cardano, and Hedera recorded gains of 20-30%.