Morning Wrap (19.12.2023)

Indices in the Asia-Pacific region are mixed. The Chinese market stands out with declines, where indices are losing about 1.00%. Meanwhile, other indices are recording gains. The Australian S&P ASX 200 is up 0.80%, and the Japanese Nikkei 225 is up 1.40%.

The Bank of Japan leaves interest rates unchanged at -0.10%, in line with expectations.

BoJ expects a gradual increase in core inflation towards price stabilization. Meanwhile, headline inflation is expected to rise above 2.0% in the next fiscal year.

The Japanese Yen is one of the weakest currencies following the BoJ's decision and press conference. The USDJPY currency pair gains 0.50% to 143.500.

In the first part of the day, minutes from the December meeting of the RBA, the Reserve Bank of Australia, were published. The Board noted that the inflation forecast assumes its return to the upper part of the target range only by the end of 2025.

The RBA Board considered between leaving rates unchanged and raising them by 25 basis points. Further tightening will be decided based on data and risk assessment.

As a result of the market's somewhat hawkish reception of the minutes, the Australian dollar remains one of the strongest currencies among G10 countries.

In the precious metals market, we observe mixed sentiments. Gold, GOLD, is trading lower by 0.15%. However, the price remains above the key barrier of 2000 USD at 2023 USD per ounce. Silver is recording gains, up 0.20% to 23.80 USD.

Cryptocurrencies continue the gains started in the second part of yesterday. Bitcoin is up 0.60% and is trading at 42900 USD. Larger gains are observed in Ethereum, which is up 1.20% to 2250 USD.