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21 Mar 2024

The Trade Academy Team

08:00 CET - 3 min read

Thursday Morning Coffee - Markets Update -21 Mar 2024 - APAC Stocks follow Wall Street Surge as US Maintains Rate Cut Plan

Markets Update: This is a busy day for economic data releases and central bank activity. The PMI numbers and central bank decisions will likely have the most significant impact on financial markets.


by TradingView

Global Markets Roundup: 21 Mar 2024

Asian equities rallied, reaching new highs, while gold prices surged and Japan's Nikkei soared to unprecedented levels following the U.S. Federal Reserve's affirmation of its intention to proceed with interest rate reductions. The U.S. dollar experienced a slight dip, and traders marginally adjusted their anticipations for a U.S. rate reduction in June, according to FedWatch. Japan's Nikkei NI225 ascended by 1.5%, reaching a fresh pinnacle above 40,000 during early trading. Additionally, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) surged by 1.6%. Overnight, as anticipated, the Fed maintained U.S. rates at levels between 5.25% and 5.5%, while marginally elevating inflation forecasts. The median projection of policymakers for three 25 basis point rate cuts this year remained unchanged from December. Over in Europe in the Pre-market at 07:37 UTC+1, the EURO STOXX 50 trades up at 5016 EUR (+57, +1.15%).

U.S. Treasury yields experienced a slight decline in New York trading and remained stable in Asia. Two-year yields (US2YT=RR) were last recorded at 4.59%, while 10-year yields stood at 4.26%. The S&P 500 SPX achieved a record closing high, and U.S. and European futures appreciated during Asian trading. Fed Chair Jerome Powell informed reporters that persistent inflation reports indicate price pressures but have not fundamentally altered the overarching narrative of inflation gradually receding.

In foreign exchange markets, the dollar (DXY), which had recently strengthened amid concerns of a more hawkish Fed stance, weakened against most major counterparts, lifting the yen from near multi-decade lows to 150.45 per dollar. The euro EURUSD reached a week high of $1.0939 in Asia. Similarly, the Australian dollar AUDUSD surged to a one-week high following a remarkably robust jobs report, dispelling speculation of early policy easing.

In commodities, U.S. West Texas Intermediate (WTI) futures for May, CL1!, demonstrated a notable uptick on Thursday, March 21, 2024. The market witnessed a gain of 47 cents, equating to a percentage increase of 0.6%, with prices settling at $81.74 per barrel. Brent crude futures BRN1! maintained stability at $86.34 per barrel. Spot gold GOLD, expected to benefit from lower interest rates as bond yields decline, spiked to an all-time high of $2,222 per ounce. Wheat ZW1! climbed 1% to $5.50-1/2 a bushel and corn ZC1! jumped 1.3% to $4.44-3/4 a bushel.

Economic Calendar Highlights for Today (Thursday, March 21st, 2024):

Focus on Manufacturing and Central Bank Decisions:

  • Purchasing Managers' Indexes (PMIs): Get a sense of business activity in various sectors across France, Germany, the Eurozone, UK, and the US.
  • Central Bank Policy Announcements: Watch for interest rate decisions and commentary from the Bank of England (BoE), Swiss National Bank (SNB), Norges Bank (Norway), and the Central Bank of the Republic of Turkey (CBRT).
  • Policymaker Speeches: Hear insights from Norges Bank Governor Øystein Olsen, SNB Chairman Thomas Jordan, and Federal Reserve Board Vice Chair Michael Barr.

Other Notable Events:

  • US Initial Jobless Claims (IJC): Gauge the pace of layoffs in the US labor market.
  • Japanese Consumer Price Index (CPI): Track inflation trends in Japan.
  • Bond Supply Auctions: Spain, France, and the US will be issuing government bonds.

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

Rating: Mixed Outlook

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