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21 Feb 2024

The Trade Academy Team

08:00 CET - 3 min read

Wednesday Morning Coffee - Markets Update - 21 Feb 2024 - Global Markets Hold Steady as FOMC Minutes Loom

Markets Update: APAC markets traded sideways today, caught between the downdraft from a US tech sell-off and lingering geopolitical tensions.


by TradingView

Global Markets Roundup: 21 Feb 2024

In the Asia-Pacific region, stock markets exhibited a mixed performance, grappling with headwinds following a downturn in the technology sector in the United States. This trend preceded the eagerly awaited earnings report from Nvidia. Turning our attention to European markets, equity futures pointed to a restrained opening, with Euro Stoxx 50 futures reflecting a modest increase of 0.1%. This followed a marginal decline of 0.1% in the cash market on the preceding Tuesday. In the realm of currencies, the U.S. Dollar Index (DXY) hovered around the 104 mark, while the Euro to US Dollar (EUR/USD) pair maintained a status of 1.08. Noteworthy was the continued outperformance of the antipodean currencies. Bund futures displayed subdued activity, while Crude futures rebounded from the lows experienced in the prior trading session.

In today's market developments the ASX 200 experienced a decline primarily attributed to the underperformance of consumer stocks and mining sectors, marking another eventful day driven by corporate earnings reports. Concurrently, the Nikkei 225 continued its measured retracement from its recent near-record highs, although it managed to sustain levels above the 38,000 mark. In contrast, the Hang Seng and Shanghai Composite demonstrated resilience as they shrugged off early market weakness. Hong Kong's performance notably stood out, buoyed by robust showings in the property and technology sectors. Meanwhile, the mainland Chinese market rebounded from initial losses, surpassing earlier downturns, a testament to the effectiveness of recent stability measures implemented by Chinese authorities. These developments underscore the intricate dynamics at play in the global financial landscape, where regional factors and governmental interventions continue to shape market sentiment.

Foreign Exchange (FX):

The US Dollar Index (DXY) remained resilient, hovering around the 104.00 level in the wake of recent market pressure. Investors eagerly awaited the release of the Federal Open Market Committee (FOMC) Minutes for insights into the central bank's policy outlook. EUR/USD exhibited modest gains, finding support near the 50-day moving average (DMA) at 1.0806. Meanwhile, GBP/USD traded calmly, stabilizing after volatile movements and following commentary from the Bank of England (BOE). USD/JPY continued its oscillation around the 150.00 level, responding to mixed Japanese trade data. Down under, the Australian and New Zealand Dollar (AUD and NZD) found support, buoyed by a strengthening Chinese Yuan (CNH) and recovering Chinese stocks. Additionally, Australia's Wage Price Index either met or exceeded expectations. The People's Bank of China (PBoC) set the USD/CNY mid-point at 7.1030, surprising analysts who had anticipated 7.1877 (previous 7.1068).

Fixed Income:

In the fixed income markets, 10-year US Treasury (UST) futures lacked clear direction ahead of a 20-year auction and the imminent release of FOMC Minutes. Bund futures, following a recent pullback, tested the downside, reaching the 133.00 level. Despite mixed trade data and the Bank of Japan's (BoJ) market presence, 10-year Japanese Government Bonds (JGBs) remained flat.


Crude futures rebounded from the prior day's lows, experiencing limited price action amid mixed risk sentiment and delayed weekly inventory data due to the recent US holiday. Spot gold saw marginal gains, with upward momentum constrained by a stable US Dollar in anticipation of the FOMC Minutes. Copper futures took a breather after recent advances, despite a turnaround in Chinese risk sentiment. The International Copper Study Group (ICSG) reported that world refined copper markets shifted to a surplus of 20,000 metric tonnes in December 2023, a notable shift from the 123,000 deficit recorded in November.

Looking ahead, the economic calendar features key events, including Eurozone Consumer Confidence, New Zealand Trade data, Australian PMI figures, the release of FOMC Minutes, and comments from Federal Reserve officials Bostic and Bowman, alongside Bank of England's Dhingra. Additionally, there will be the infusion of supply from the United Kingdom, Germany, and the United States.

On the corporate front, notable earnings releases include reports from Rio Tinto, Glencore, HSBC, BAE Systems, Fresenius, NVIDIA, Analog Devices, and Synopsys. Investors will be closely monitoring these results for insights into the financial health and performance of these prominent entities in the global markets.

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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