04 MAR 2024

The Trade Academy Team

08:00 CET - 3 min read

Monday Morning Coffee - Markets Update - 04 Mar 2024 - APAC Markets Mixed - Japan Soars, Europe Steady, Oil Jumps on OPEC Cuts

Markets Update: Japan Surges to 52-Week High as Global Investors Eye Busy Week Filled with Central Bank Meetings, Budget Announcements, and Economic Data Dumps.

ECONOMIC CALENDAR

by TradingView

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Global Markets Roundup: 04 MAR 2024

Global markets navigated a mixed landscape in the Asia-Pacific region on Monday, as investor sentiment remained cautious in anticipation of a week filled with significant events.

Japan's benchmark index surged beyond the 40,000-point threshold, propelled by a robust performance in chip-related stocks, mirroring the upward trend witnessed in the United States. The Nikkei 225 exhibited a notable gain of 0.5%, equivalent to 198.41 points, concluding the trading day at 40,109.23. The index reached a pinnacle of 40,314.64, establishing a new 52-week high during the session. ASX 200 exhibited a lack of conviction, grappling with diverse data releases that tempered market enthusiasm, despite briefly reaching a new record high. European equity futures hinted at a slightly higher open, with Euro Stoxx 50 futures showing a modest increase of 0.2% following a 0.4% uptick in the cash market on Friday.

In the currency markets, the US Dollar Index (DXY) remained below the 104 mark, while the Japanese Yen (JPY) lagged marginally against other major currencies. The EUR/USD pair managed to hold steady, buoyed by a subdued performance of the US dollar. Investors maintained a cautious stance as they awaited the upcoming European Central Bank (ECB) meeting scheduled later in the week. Meanwhile, the GBP/USD pair experienced marginal gains, building upon Friday's highs. However, the upward momentum was tempered by a lack of significant catalysts. Attention turned to the United Kingdom's Budget announcement slated for Wednesday, with Chancellor Hunt reportedly contemplating further reductions in public spending to facilitate tax cuts. In the Asia-Pacific region, both the Australian dollar (AUD) and the New Zealand dollar (NZD) exhibited signs of indecision. Sentiment remained mixed amidst a diverse array of economic data emanating from Australia. The broader regional sentiment also contributed to the uncertainty surrounding these currencies. The overall foreign exchange (FX) space exhibited restrained price action during the trading session.

In commodities markets WTI crude futures surged beyond $80 per barrel, building on the momentum from the previous week, following the decision by OPEC and its allies to prolong voluntary production cuts until the end of June. The de facto leader of OPEC, Saudi Arabia, announced an extension of its voluntary output cut by 1 million barrels per day, maintaining the reduction until the close of the second quarter. Simultaneously, Russia disclosed plans to curtail both production and export supplies, amounting to a combined 471,000 barrels per day. Iraq and the UAE also committed to sustaining their output reduction efforts, with decreases of 220,000 barrels per day and 163,000 barrels per day, respectively, continuing until the end of June. Analysts, however, characterized the decision as unsurprising, suggesting that market expectations had already factored in the extensions. In the Middle East, additional factors contributing to the global oil price surge include ongoing uncertainty surrounding ceasefire talks between Israel and Hamas. Furthermore, the persistent Houthi attacks on Red Sea shipping have introduced a risk premium to oil prices, adding an element of geopolitical tension to the market dynamics. The price of gold stabilized at approximately $2,080 per ounce, following a notable uptick of nearly 2% in the preceding session. This resilience in the precious metal's value was attributed to a confluence of factors, including a depreciation in the US dollar and a reduction in Treasury yields. These market dynamics transpired against the backdrop of a downturn in key economic indicators within the United States, further solidifying gold's appeal as a safe-haven asset in response to the prevailing uncertainties. Copper futures experienced a subdued performance, reflecting the tepid risk appetite prevailing in China, the largest consumer of the metal.

Looking ahead, the economic calendar includes key data releases such as German Import Prices, Swiss Consumer Price Index (CPI), Eurozone Sentix Index, Australian Purchasing Managers' Index (PMI), Tokyo Consumer Price Index (CPI), and comments from Federal Reserve's Harker, which are poised to influence market dynamics throughout the day. Investors will closely monitor these developments for insights into global economic trends and potential market shifts.

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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