Monday, February 12, 2024 4:34 a.m.
Today’s market movements: Australia falls, Asia holidays closed, Bitcoin soars, gold suspended in light trading.Watch for Tuesday’s US inflation report and official Fed speech
Stock markets in the Pacific region fell as mainland China and Hong Kong were closed for Lunar New Year, while Japan and South Korea celebrated public holidays. Oil prices fell after Israel declared an end to its strike in southern Gaza. Bitcoin soared with its biggest weekly gain in four months. Investors are looking forward to Tuesday’s U.S. Consumer Price Index (CPI) data, Thursday’s retail sales data and Friday’s Producer Price Index (PPI) data. Additionally, they are keen to hear insights from at least seven Federal Reserve officials throughout this week. Here are five key takeaways from the day.
China’s bank lending hits record high in January thanks to policy support
New bank lending in China reached a record high of 4.92 trillion yuan ($683.7 billion) in January, exceeding expectations and demonstrating the People’s Bank of China’s strong efforts to boost the economy. The jump, which is four times higher than December’s figures, suggests further stimulus measures may be forthcoming in the coming months.
UK employers predict pay rise cuts in 2024: CIPD survey
British employers plan to raise wages by a smaller margin next year than they did three months ago, marking the first rise in almost four years. Reuters reports that a survey by the Chartered Institute of Personnel Development (CIPD) forecasts that basic pay will increase by 4% over the next 12 months, down from the previous forecast of 5%. It became clear. This adjustment reflects less tolerance for rising labor costs and is the first decline since early 2020.
Oil prices start the week lower as Israel ends its attack on Gaza
Oil prices fell in early Asian trade after Israel announced an end to its strike in southern Gaza, easing concerns about supplies in the Middle East. Brent crude oil futures fell 42 cents to $81.77 per barrel, and U.S. West Texas Intermediate crude futures fell 43 cents to $76.41 per barrel. Geopolitical tensions pushed prices up about 6% last week. Trading during Asian hours is quiet as markets are closed for holidays in much of the region, including China, Hong Kong, Japan, South Korea, Singapore, Taiwan, Vietnam and Malaysia.
what will happen next
Looking ahead to next week, a number of important economic indicators are expected to be released. In the United States, updates on the Consumer Price Index (CPI), Producer Price Index (PPI), retail sales, and industrial production are eagerly awaited. Japan and the European Union will both release their initial forecasts for fourth-quarter gross domestic product (GDP) growth. Meanwhile, the UK is preparing to release estimates of GDP, CPI inflation, retail sales, employment and wage data for the fourth quarter. Additionally, Germany is scheduled to issue an updated ZEW report. Additionally, we have a lineup of central bank speakers prepared to provide insights exclusive to Premium subscribers. Additionally, this week will see a flurry of earnings reports from British utilities, European banks and American consumer goods manufacturers.
Australian market decline.Indian stocks start to decline
The S&P/ASX 200 index fell 0.3% to 7,618.70 after rising slightly on Friday. Indian stocks had a quiet start, with energy stocks weighed down by lackluster results from Oil and Natural Gas Corporation and Tata Power Company. The NSE Nifty 50 index fell 0.05 per cent to 21,770.15, while the S&P BSE Sensex rose 0.02 per cent to 71,612.43. Gold prices fell last week but were flat during holiday trading. Bitcoin rose 1.24% to 40,000 yen on Monday, following a 5% gain on Friday, due to increased buying activity ahead of April’s halving event and lower outflows from exchange-traded funds (ETFs). It came to $8,139.