Morning Wrap (20.08.2024)

6:36 AM 20 August 2024
  • Low volatility on Wall Street yesterday has led to a similarly directionless session in the Asia-Pacific region today. Chinese indices are down between 0.70% and 1.00%, the Japanese Nikkei 225 is up 0.70%, Australia's S&P/ASX200 is trading 0.20% lower, and futures on Singapore's SG20cash index are up 0.55%.

  • Futures on European indices point to a flat cash session opening with no clear direction. The DAX is up 0.03%, while the UK100 is down 0.05%.

  • In the forex market, the New Zealand dollar is one of the stronger currencies in the first part of the day. On the other hand, the Japanese yen is weakening significantly, with losses ranging from 0.3% to 0.5%. USD/JPY is up 0.40%, returning above the 147.0000 level.

  • China's Central Bank left interest rates unchanged at its monthly fixing on Tuesday, in line with market expectations. The one-year Loan Prime Rate (LPR) was maintained at 3.35%, while the five-year LPR remained unchanged at 3.85%.

  • The minutes from the latest Reserve Bank of Australia meeting were released today. The report reveals that the RBA considered raising interest rates in August due to ongoing concerns that inflation may remain elevated for an extended period.

  • However, the interest rate was ultimately kept unchanged at 4.35%. Board members noted that the risk of not achieving the inflation target by the end of 2025 had significantly increased. This view aligns with the hawkish stance of Governor Michele Bullock during the press conference following the decision announcement.

  • Joe Biden, in a lengthy speech at the opening of the Democratic National Convention, urged the convention to support Kamala Harris as his successor, saying that choosing her as vice-president was the best decision he had made in his entire career.

  • Republican presidential candidate Donald Trump said on Monday that if he wins the election in November, he would consider ending the $7,500 tax credit for the purchase of electric vehicles. Trump also said he would be open to appointing Tesla CEO Elon Musk to a cabinet or advisory position

  • In the cryptocurrency market, we are seeing a significant rebound. Bitcoin is up 3.80%, returning to the $61,300 level, breaking through resistance at the psychological $60,000 mark. Ethereum is up 1.90% to $2,680, and other altcoins are collectively up 1.60%, with a total market capitalization of $580 billion.

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