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5 things to know at the start of the week
Investors gear up ahead of a data-intensive week in the markets
Major U.S. banks face challenges with reduced profits, special charges, and concerns about consumer loans.
Gold surpasses $2050 amidst geopolitical tensions and thin trading volume during the U.S. holiday.
The People's Bank of China (PBOC) maintains medium-term lending rates, contributing to a rise in Chinese stocks post liquidity injection.
On the Market Watch!
Earnings
Major U.S. banks reported a challenging fourth quarter marked by reduced profits, special charges, and workforce reductions. There are indications that the previously observed income boost from high interest rates is diminishing, and there are concerns emerging about the quality of consumer loans as some show signs of deterioration.
According to the CME FedWatch tool, Markets are now pricing a 78% chance that the Fed will being easing rates in March vs 68% a week ago.
Gold surpasses $2050
The price of gold remains buoyant, finding support amid a fluctuating U.S. Dollar. As investors turned to the safe-havens way.
The yellow metal rose above $2050 in today’s Asian session amid intensifying geopolitical tensions and US holiday thin trading volume.
BoJ
The USD/JPY continued to rise, hovering near 145.62 amid expectations that the BOJ will maintain its ultra-loose policy during its meeting next week. The Nikkei 225 too notched 34-year highs for the fourth consecutive session.
Taiwan’s elections
Following the victory of the Democratic Progressive Party's (DPP) Lai Ching-te in the presidential election over the weekend, the Taiwan dollar declined to a more than three-week low of 31.222 per U.S. dollar. However, it's worth noting that despite the presidential win, the DPP lost its majority in parliament.
The PboC
The People's Bank of China (PBOC) chose to maintain its medium-term lending rates, indicating a delicate balancing act as it grapples with the challenge of supporting economic growth while also attempting to prevent additional depreciation of the yuan. Chinese stocks rose after the liquidity injection.
