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Investors await UK data and European inflation figure
UK economic indicators and European inflation data are in focus today
Oil prices show stability, with Brent at $73.48
Gold holds steady at $2,687
USDJPY rises to 152.9, while EURUSD hovers at 1.04635
Today's market focus centers on key economic data and events. In the UK, economic indicators are in the spotlight, while Europe will release inflation figures. Investors will also track industrial production numbers across Europe and pay attention to the US trade prices and Canadian wholesale sales reports. The European Central Bank's Holzmann is expected to comment following the previous day's 25bps rate cut.
Asian markets
China leading the downturn, as China's Central Economic Work Conference raised expectations for stimulus measures, but state media’s reports of a higher deficit and more lenient policies failed to meet market hopes. ANZ forecasts China’s GDP growth at 4.9% in 2024 but remains cautious about property market risks.
Currencies
The ECB's 25bps rate cut, with some members pushing for a larger reduction, has markets anticipating slower Fed rate cuts in 2025. The US dollar strengthened, reaching a two-and-a-half-week high against other major currencies, with the probability of a 25bps rate cut by the Fed next week now at 96.4%.
The USDJPY soared to 152.9, and the EURUSD hovered around 1.04635.
Commodities
Oil prices showed stability, with Brent crude at $73.48 and WTI at $69.68, poised for a potential weekly gain. The IEA has raised its 2025 demand forecast but cautioned about an oversupply.
Gold prices held steady at $2,687, bolstered by geopolitical tensions but constrained by the US dollar’s strength. Copper fell to $9,093 following disappointing stimulus news from China.
Market attention will shift to next week's US Federal Reserve meeting, with significant data releases on UK GDP and Eurozone industrial production due on Friday. Gold remains supported by geopolitical risks and expectations of a Fed rate cut, but the US dollar’s strength caps any further upside. Meanwhile, oil struggles to gain traction, with OPEC+ decisions and signs of slowed demand continuing to weigh on prices.
