Support
Strong earnings lift market sentiment
Bank of Japan maintains rates, yen weakens against USD
Positive momentum drives gains in Asian markets
Gold and silver prices up
Futures signal a promising start for European stock markets
Stock Market
Sentiment on Wall Street improved yesterday following the release of strong earnings reports from Microsoft and Alphabet. Both companies exceeded expectations, particularly in the areas of cloud services and AI.
Today the Asian markets are trading higher, while futures on European benchmarks suggest a positive opening for European stock markets.
Yen
As anticipated, the Bank of Japan kept interest rates unchanged at 0.1%, in line with market expectations. The Japanese yen weakened in response, with USDJPY reaching record highs above 156. Governor Ueda emphasized data dependency in decision-making and left the option open for further rate hikes despite unfavorable recent inflation data.
Commodity Markets:
Gold and silver prices are trading higher during the Asian session on Friday. Markets are pricing that the Federal Reserve will likely delay cutting interest rates due to persistent inflationary pressures. This perception has revitalized demand for the US dollar, supported by a generally positive tone in equity markets. Consequently, these factors might act as headwinds for the safe-haven precious metal and might restrain its upward momentum.
WTI crude oil prices recovered to $83.60 during Friday's early Asian session, as concerns rise over oil supply disruptions amid renewed geopolitical tensions lifted prices.
