U.S futures were flat while Asian shares followed inflation tailwinds. Oil prices fell but gold steadied before key data release. Yen surpassed its 7-month peak. Cryptos continued gains.Updated time: 17 Jan, 2023, 14:01 (UTC+04:00)
Markets were closed on Monday for a public holiday. U.S stock futures had little change following Wall Street’s rally last week on slightly lower CPI data, rotating investors back to riskier assets. Dow Jones Futures were flat while S&P 500 Futures and Nasdaq Futures lost 0.1% apiece. In the coming week, investors will look forward to new figures, results from Big banks and important readings from major economies.
Asian stocks responded positively to climbs of U.S stocks, with shares in South Korea, Australia and Hong Kong all recorded gains. Meanwhile, equities in Japan opened lower as the rebounding yen continued to hurt exporters. Chinese technology stocks returned to the trading track in investors’ wary of regulatory risks and the impact of increased COVID-19 infections.
Oil prices slid as markets awaited demand forecasts from OPEC and crude reports from IEA while also eyeing clear economic data. Brent crude oil futures and WTI crude fell 0.5-0.6% to trade at $85.09 and $79.67 per barrel, respectively.
Gold prices steadied as investors took cautious steps ahead of key economic reports and central banks‘ meetings. Fears of a recession in major economies stemming from the expected easing rate hikes boosted the yellow metal to the safe-haven demand level. Spot gold fell 0.1% to $1,918.49, while gold futures were steady at $1,921.50.
Japanese yen surged over its seven-month high to 127.38 as traders ramped up bets that the BoJ may make further tweaks to its yield control monetary policy. Reversely, signs of cooling inflation stimulated the dollar's selloff to dwindle to a seven-month low, pinning its index down 0.46% to 101.79. As a result, other majors showed 0.3-0.6% growth to: $1.0867 for euro, $1.2288 for sterling, $0.7013 for Aussie and $0.6423 for kiwi.
Cryptos extended gains on inflation tailwinds. Bitcoin held near the $21,000 mark while Ethereum continued its upward momentum above $1,550. Other major coins also ended in green.