12 Feb 2024

The Trade Academy Team

08:00 CET - 3 min read

Monday Morning Coffee - Markets Update - 12 Feb 2024 - APAC Stocks Muted, European Futures Upbeat as Central Banks Take Center Stage

Markets Update: While APAC markets lacked direction, European markets seem poised for a slightly positive start, fueled by Panetta's hawkish stance and a cautious optimism ahead of key economic data. Central bank rhetoric and economic releases remain the main drivers of sentiment in the near term.

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Global Markets Roundup: 12 Feb 2024

APAC stocks traded sideways on Monday, lacking major newsflow and facing mass holiday closures in the region. ECB Governing Council member Fabio Panetta signaled an imminent shift in monetary policy, suggesting faster rate hikes are coming. European equity futures point to a slightly positive open, with the Euro Stoxx 50 future up 0.3% following Friday's modest gain. Major FX pairs remain rangebound: DXY hovers around 104, EUR/USD eyes 1.08, and USD/JPY sits near 149.

ASX 200 Slumps on Healthcare Woes: Australia's benchmark index dipped on Monday, led by losses in the healthcare and commodity-related sectors. Shares of CSL, a major healthcare company, took a significant hit after disappointing results from a phase 3 drug trial. Europe Prepares for Mildly Positive Open: European equity futures suggest a slightly positive start for the region, with the Euro Stoxx 50 future up 0.3%. This follows a modest

FX:

• DXY: Stuck in a tight range around 1.04 ahead of key US CPI data.
  
• EUR/USD: Up slightly, capped by resistance at 1.08 as ECB's Panetta hints at policy tightening.
  
• GBP/USD: Quiet before BoE Governor Bailey's speech and busy UK data week.
  
• USD/JPY: Rangebound due to Japanese holiday.
  
• AUD and NZD: Underperform slightly, NZD despite hawkish RBNZ comments.
  

Fixed Income:

• 10-year UST futures: Slightly down, reflecting Friday's losses.
  
• Bund futures: Rebound from YTD lows near 133.50, echoing ECB commentary.
  

Commodities:

• Crude futures: Subdued despite Israel-Gaza tension.
  
• Spot gold: Rangebound with flat dollar and ahead of US CPI data.
  
• Copper futures: Lack demand due to thin Asian trading.
  

Central Banks in Focus:

Monday brings renewed focus on central bank policy and economic data. Panetta's hawkish tone adds to rising expectations of faster rate hikes from the ECB, potentially boosting the Euro. Comments from other central bankers, including Fed officials Barkin and Kashkari, could offer further clues about the pace of global monetary tightening.

Trading Activity:

Despite Panetta's comments, FX markets remain subdued with major pairs stuck in familiar ranges. Investors may wait for key data releases later this week before committing to larger moves.

Key Events to Watch:

• US: Federal Budget release, NY Fed Survey of Consumer Expectations.
  
• Japan: Corporate good prices data.
  
• Canada: Bank of Canada Senior Loan Officer Survey (SLOOS).
  
• Europe: Comments from ECB officials Philip Lane and François Villeroy de Galhau, RBA Deputy Governor Michele Bullock, Fed presidents William Barkin and Neel Kashkari.
  
• Earnings: Michelin (France).
  

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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