19 Feb 2024

The Trade Academy Team

08:00 CET - 3 min read

Monday Morning Coffee - Markets Update - 19 Feb 2024 - Global Markets Open Mixed as Concerns Linger, Commodities See Selective Strength

Markets Update: The outlook for the week remains cautious, with investors likely to adopt a wait-and-see approach until they receive more clarity on key economic and geopolitical developments

ECONOMIC CALENDAR

by TradingView

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Global Markets Roundup: 19 Feb 2024

APAC Markets Mixed: Asian stocks opened the week on a muted note, with some bourses managing modest gains while others drifted lower. The ASX 200 in Australia edged up 0.04%, supported by financials and healthcare sectors. Nikkei 225 in Japan climbed 0.23%, buoyed by a weaker yen to a fresh 34 year high. However, Hang Seng in Hong Kong slipped 0.32% and Shanghai Composite in China retreated 0.15% amid mixed sentiment. Euro Stoxx Flat: European markets are expected to open cautiously, with the Euro Stoxx 50 futures pointing to a flat start. Investors remain wary of geopolitical tensions surrounding Ukraine and potential monetary policy tightening by major central banks.

Major FX Europe Awaits Further Cues: Major FX currencies in Europe are trading in narrow ranges ahead of key economic data releases later this week. EUR/USD hovers around 1.0770, GBP/USD trades near 1.2620, while USD/JPY remains close to 149.90. US Dollar Index Stable: The US Dollar Index is holding steady around 104.14, awaiting direction from upcoming US inflation data and Federal Reserve minutes. APAC FX Quiet: Similar to major FX pairs, APAC currencies are displaying muted movements. AUD/USD trades around 0.6544, NZD/USD hovers near 0.6150, while USD/CNH remains stable at 7.1970.

Commodities Experience Mixed Fortunes:

• Oil Futures: WTI Crude Oil declined by 0.83% and Brent Crude fell by 0.65% on existing geopolitical movements and a stronger US dollar.
  
• Gold: Spot gold steadied around $2,030 per ounce, finding support from safe-haven demand amid global uncertainties.
  
• Copper: Copper futures dipped below $3,8200 per tonne, pressured by weaker economic data from China and worries about demand outlook.
  
• Arabica Coffee: Prices retreated further, falling below $1.90 per pound due to ample supplies and concerns about demand in key consuming regions.
  
• Cocoa: Prices remained volatile, fluctuating around $5,300 per tonne on uncertainties surrounding the upcoming Ivorian cocoa season.
  
• Wheat: Wheat futures traded sideways near $5.59 per bushel, as market participants balanced worries about the Ukraine conflict with expectations of ample global supplies.
  
• Corn: Corn futures experienced modest gains, climbing towards $4.16 per bushel, supported by concerns about dry weather conditions in Argentina and potential export disruptions from Ukraine.
  

Looking Ahead:

• Economics: This week's economic calendar features key data releases like US CPI, FOMC minutes, Eurozone GDP, and Chinese PMI.
  
• Central Banks: Investors will closely monitor developments around potential monetary policy tightening by the Federal Reserve, European Central Bank, and Bank of Japan.
  
• Geopolitics: Ongoing tensions surrounding Ukraine and potential escalation continue to pose risks to market sentiment.
  

Commentary:

Global markets are displaying cautious optimism at the start of the week, with investors balancing positive earnings reports with lingering geopolitical concerns and uncertainties surrounding central bank monetary policy. While some APAC markets managed to edge higher, European and US markets await further cues from upcoming economic data and central bank pronouncements. Commodity markets are experiencing mixed fortunes, with oil and gold finding support from safe-haven demand, while copper faces headwinds from weaker economic data and demand concerns.

You can view all markets data and charts here.

General news - Information source from multiple newswires.

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

The Trade Academy Team