Risk sentiment took a mild turn to the downside in European markets today, with DAX pulling back from last week’s solid gains. Investors are watching developments in Germany’s political arena, where Greens have voiced opposition to proposals by CDU’s Friedrich Merz for a sweeping overhaul of debt rules, including a massive increase in state borrowing […]
Forex markets are trading quietly in the Asian session, remaining within Friday’s range and showing little impetus to move decisively in either direction. Dollar is staying on the back foot, with a lack of substantial buying interest to sustain a meaningful rebound. While last week’s non-farm payroll data helped calm fears of a rapid labor
Japan’s leading index increased less-than-expected in January to the highest level in three months, preliminary data from the Cabinet Office showed on Monday. The leading index, which measures future economic activity, rose to 108.0 in January from a downwardly revised 107.9 in December. The score was forecast to increase to 108.4. Likewise, the coincident index
The value of overall bank lending in Japan was up 3.1 percent on year in February, the Bank of Japan said on Monday – coming in at 635.468 trillion yen. That was in line with expectations and up from the downwardly revised 2.9 percent increase in January (originally 3.0 percent). Excluding trusts, bank lending climbed
Euro remained firm following ECB’s decision to cut interest rates, a widely anticipated move. During the subsequent press conference, President Christine Lagarde emphasized a shift to “more evolutionary approach” to policy, now that monetary conditions have become “meaningfully less restrictive.” She also acknowledged the high levels of uncertainty, noting that “risks are all over.” Lagarde
Investor sentiment in Europe is exceptionally upbeat today, with German stocks leading the rally as DAX surges over 3%, breaking above the 23k mark. Euro also rallies across the board with solid momentum, with help from rise in Germany’s benchmark yield, the overall positive sentiment, as well as a struggling Dollar. The boost to European
Despite the steep selloff on Wall Street overnight, sentiment appears to have improved somewhat in Asia. Investors found reasons for optimism as China set a 2025 GDP growth target of around 5% and announced stimulus measures to counter escalating tensions with the U.S. In a notable shift, Beijing raised its budget deficit target to roughly
Japan’s consumer sentiment decreased unexpectedly in February to the lowest level in almost two years, survey data from the Cabinet Office showed on Tuesday. The seasonally adjusted consumer confidence index weakened to 35.0 in February from 35.2 in January. Meanwhile, economists had forecast the index to rise to 35.7. Further, the latest reading was the
Japanese Prime Minister (PM) Shigeru Ishiba said on Tuesday that “Japan is not pursuing so-called currency devaluation policy.” Ishiba further noted that they “have had no phone call from US President Trump regarding forex policy.” Market reaction The Japanese Yen (JPY) is recovering some ground against the US Dollar (USD) following these comments. At the
European markets saw a strong rally today, with notable fund inflows driving gains in DAX and Euro. Investor sentiment was boosted by expectations of increased military spending after the announcement of the UK and France-led “Coalition of the Willing” to support Ukraine. FTSE and Sterling also benefited from the renewed optimism, as traders priced in
Bitcoin led the charge in an otherwise quiet Asian session, rebounding over 20% from last week’s low after a major announcement from US President Donald Trump. The cryptocurrency sector saw dramatic relief from its steep selloff last week, as Trump revealed the creation of a strategic crypto reserve, including Bitcoin, Solana, XRP, and other digital
Japan’s manufacturing activity continued to contract in February albeit at a slower pace, final survey data from S&P Global revealed on Monday. The au Jibun Bank manufacturing Purchasing Managers’ Index rose to 49.0 in February from 48.7 in January. The flash reading was 48.9. However, a reading below 50.0 indicates contraction. Operating conditions deteriorated for
Risk sentiment received a boost in early US trading as January’s PCE inflation data came in line with expectations, lifting hopes that Fed may have room to cut rates in the first half of the year. Both headline and core PCE inflation slowed, adding to expectations that disinflation remains on track. Fed fund futures now
Global stock markets are under heavy selling pressure as risk-off sentiment dominates the final trading day of February. The selloff intensified across major indices, with Japan’s Nikkei plunging -3% and Hong Kong’s Hang Seng Index down -2.8%, following the steep declines in US equities overnight. Investors are increasingly wary of escalating trade tensions, which could
Bank of Japan Deputy Governor Shinichi Uchida said on Friday that Japan’s economy is experiencing a moderate recovery, though some weaknesses persist. Key quotes Japan’s economy is experiencing a moderate recovery, though some weaknesses persist.The underlying inflation rate is gradually rising toward the 2% target.The Bank of Japan’s JGB holdings continue to provide a strong monetary
Geopolitical developments dominated global headlines last week, particularly surrounding peace negotiations over Russia’s invasion of Ukraine and evolving US-Ukraine relations. While US President Donald Trump’s tariffs took a backseat, concerns over their impact on consumer spending and economic growth resurfaced by the end of the week, triggering renewed risk aversion. Markets lacked clear direction for
Trading is rather subdued in the forex markets today, with most major pairs and crosses stuck within yesterday’s range. Loonie failed to react to significantly stronger-than-expected retail sales data. Euro dipped earlier following weak PMI reports, but selling pressure quickly fizzled out. Yen saw some volatility during the Asian session, initially weakening alongside Japanese bond
