Morning Wrap (29.12.2023)

Indices in the Asia-Pacific region are experiencing a mixed session on the last day of the year. Only the Korean KOSPI index stands out with a gain of 1.60%.

Chinese indices are flat, slowing down the momentum after yesterday's strong gains. The Australian S&P ASX 200 gains a modest 0.15%, while the Japanese Nikkei 225 loses 0.20%.

In the first part of today's session, the strongest G10 currencies include the Australian dollar (AUD) and the New Zealand dollar (NZD). The U.S. dollar (USD) is experiencing moderate declines, mainly around 0.1-0.3%.

The inflation report from South Korea turned out to be slightly lower than expected. Actual data showed a change of 3.3% year-on-year; expectations were 3.3% year-on-year, previously 3.30% year-on-year. On a monthly basis, the change was 0.0% month-on-month, with expectations of 0.2% month-on-month, previously -0.60% month-on-month.

Fidelity Investments believes that in 2024 the Fed will make several interest rate cuts, and inflation will remain at around 3.0%.

Venezuela has ordered its armed forces to conduct military exercises in response to the UK's decision to send a warship to support neighboring Guyana. Military leaders said that 5,600 soldiers will participate in "defensive" exercises on the eastern Caribbean and Atlantic coasts.

Precious metals are seeing moderate gains. Gold is up 0.35% and is retesting resistance at historically high levels around 2070-2080 USD per ounce. If the trend continues, we may witness another attempt at an upward breakout in the second part of the day.

In the cryptocurrency market, we observe a slowdown in yesterday's slight declines. Bitcoin gains a modest 0.20% to the level of 42600 USD, Ethereum is up 0.35% to 2350 USD. The altcoin market continues to hold high, gaining 0.30% today with a total capitalization of 510 billion USD (Total3).