Global Markets:
- Asian Stock Markets : Nikkei up 1.10%, Shanghai Composite up 1.28%, Hang Seng up 0.20% ASX up 0.77%
- Commodities : Gold at $2003.5 (-0.02%), Silver at $22.47 (0.42%), Brent Oil at $81.15 (-0.36%), WTI Oil at $76.38 (-0.31%)
- Rates : US 10-year yield at 4.234, UK 10-year yield at 4.067, Germany 10-year yield at 2.335
News & Data:
- (USD) Crude Oil Inventories 12.0M vs 3.3M expected
Markets Update:
Asia-Pacific markets rebounded on Thursday, overcoming previous losses, as Japan entered a technical recession with its GDP contracting for a second consecutive quarter. Japan’s fourth-quarter GDP fell 0.4% on an annualized basis, sharply missing the expected 1.4% growth and marking a technical recession. On a quarter-on-quarter basis, it slipped 0.1%, leading to Japan losing its spot as the world’s third-largest economy to Germany.
Singapore reported a 2.2% year-on-year growth in its fourth-quarter GDP, slightly below the expected 2.5%. The city-state also revised its third-quarter GDP growth rate from 2.8% to a lower figure of 1%. Despite Japan’s disappointing GDP figures, the Nikkei 225 surged 1.1%, briefly surpassing 38,000, and Australia’s S&P/ASX 200 started the day up 0.77%, breaking a three-day losing streak.
South Korea’s Kospi rose by 0.18%, and the small-cap Kosdaq was 0.36% higher. Hong Kong’s Hang Seng index opened 0.28% higher, extending gains from the previous day, while mainland Chinese markets remained closed for the week.
In the U.S., all three major indexes rebounded after Wednesday’s sell-off triggered by a higher-than-expected inflation reading, raising concerns that the Federal Reserve might delay interest rate cuts. The S&P 500 advanced 0.96%, the Nasdaq Composite climbed 1.3%, and the Dow Jones Industrial Average added 0.4%.
Upcoming Events:
- 1:30 PM GMT – USD Core Retail Sales m/m
- 1:30 PM GMT – USD Empire State Manufacturing Index
- 1:30 PM GMT – USD Retail Sales m/m
- 1:30 PM GMT – USD Unemployment Claims
