Mixed messages from markets so far this week, traders perhaps thinking twice about the consequences of a stronger than expected US labour market. Although on the face of it the numbers are encouraging, they need to be taken within the context of an increasingly cautious Federal Reserve, which has recently talked down the possibility of imminent rate cuts. The Fed has made it clear it needs assurances that inflation is firmly under control before it commits to monetary easing, a message shared by central banks the world over. The DXY gained another half a percent on Monday, echoing the sentiment that it’s perhaps too early to give up on the Dollar just yet.
Chinese markets were the stand-out performers on Tuesday, following comments from financial regulators that they would encourage more funds into the market as a way to inject fresh capital, as well as impose new restrictions on short selling. China’s sovereign wealth fund also joined the conversation, stating that it had increased investments in exchange traded funds in an effort to stabilise capital markets. The announcements were welcomed with open arms by stock markets, the Hang Seng and Shanghai Composite indices climbing 4% and 3.2% on the day, real estate and tech stocks being the main drivers behind the surge. A reminder that Chinese markets will close on Friday and remain shut for the following week in line with New Year festivities.
Very little on the economic calendar today, although tomorrow we have Chinese year-on-year inflation data as well as jobless claims out of the US. To all those observing the upcoming Lunar New Year celebrations I bid you Xin Nian Kuai Le.
Cảnh báo rủi ro : Giao dịch các sản phẩm phái sinh và đòn bẩy có mức độ rủi ro cao.
MỞ TÀI KHOẢN
