Friday Morning Coffee - Markets Update - 19 January 2024 - APAC Stocks Rise Fueled by Tech Rally and Stopgap Funding Bill in US

Markets Update: APAC Stocks Rise Fueled by Tech Rally and Stopgap Funding Bill in US; Commodities Tread Water After Early Week Rallies.

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Global Markets Roundup: 19 Jan 2023

Asian equities mostly followed Wall Street's tech-driven surge on Friday,?buoyed by positive sentiment amid the US Congress passing a stopgap funding bill to avert a government shutdown. European markets are also set for a higher open,?with Euro Stoxx 50 futures up 0.4% after Thursday's 1.1% gain in the cash market.

Major Indices Climb:

• The tech-heavy Nasdaq led the rally on Wall Street,?spilling over into Asia.
• Japan's Nikkei 225 closed up 0.8%,?briefly topping 33,400 before paring back gains.
• Hong Kong's Hang Seng and mainland China's Shanghai Composite both ended the day positive after a volatile session.
• Australia's ASX 200 managed a modest 0.1% gain.

Currencies and Data:

• The US dollar maintained its strength,?with DXY holding steady below 103.50.?EUR/USD hovered near 1.09,?while JPY weakened further against the greenback.
• Japanese inflation data revealed a slower pace of increase in Core CPI compared to June 2022,?mostly matching estimates.
• European equity futures were bolstered by the positive US session and the impending stopgap funding bill.

Crude Oil Pauses Near Highs:?Crude futures held steady,?hovering near Thursday's highs after a surge driven by rising Middle East tensions and Libyan supply disruptions.?The market appeared to be taking a breather before potentially pushing further with any developments on these fronts.

Natural Gas Disruptions Ripple Through US Fuels:?In the United States,?reports emerged of natural gas suppliers invoking force majeure and ethanol production cuts due to supply disruptions.?This sparked concerns about potential fuel shortages,?but their impact on broader commodity prices remained limited.

Gold Hits Pause After Bouncing Back:?Spot gold,?which had witnessed a recent rebound,?plateaued overnight.?Investors awaited fresh catalysts to extend the upward momentum as risk sentiment remained subdued after a mixed performance across global equities.

Copper Capped by China's Lag:?Copper futures experienced marginal gains riding the wave of mostly positive risk sentiment.?However,?the gains were capped by China's underperformance compared to other regional markets.?The world's biggest copper consumer's sluggishness cast a shadow on the metal's immediate bullish prospects.

Economic Calendar:

• The economic calendar for Friday is packed with key data releases,?including German Producer Prices,?UK Retail Sales,?EZ Construction Output,?Consumer Confidence (Flash),?Canadian Retail Sales,?and US UoM Prelim.
• Central bank policymakers will also take center stage,?with speeches from ECB President Lagarde and Fed members Daly and Barr.

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?General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team