Asian stocks advanced, fueled by China’s central bank as it stepped up support for the economy by adding $112 billion of cash into the financial system. Treasuries edged lower. MSCI AC Asia Pacific Index rose 1% to its highest since early August, with Hong Kong stocks rallying 3%. Futures for US equities crept slightly higher after a technical indicator showed they are in overbought levels. The S&P 500 saw a small advance in the previous session and the Nasdaq 100 fell after an over 50% surge in 2023. The People’s Bank of China injected a record amount of cash via one-year policy loans as it seeks to support an economy suffering from a property market crisis and weak demand. A key set of monthly data showed China’s recovery is still patchy, but a relaxation of home buying curbs in Beijing and Shanghai kept traders upbeat. Treasuries fell across tenors in Asian trading, with the 10-year yield back near 4%. The benchmark paper had declined below that level on Thursday. The yen steadied below 142 per dollar as traders adjusted their positions ahead of the weekend and before the Bank of Japan’s policy decision next week. The BOJ is expected to leave policy unchanged, but speculations are on the rise that policymakers may signal an upcoming end to the negative-rate policy. The dollar traded in tight range against the Group-of-10 currencies. The greenback had declined against most of its developed-market peers in the previous session, partly driven by strength in both the euro and the pound after Europe’s central bankers signaled they are in no hurry to join the US pivot toward interest-rate cuts. Economists at some of Wall Street’s biggest banks are now calling for the Fed to roll out rate cuts earlier and faster next year, emboldened after the central bank’s last meeting of 2023 set off fireworks across financial markets. At Goldman Sachs Group Inc., economists see a steady course of interest-rate cuts that begins in March. Barclays Plc is now calling for three cuts in 2024, from just one seen ahead of this week’s Fed meeting. And JPMorgan Chase & Co. bumped its view on the start of the easing cycle to June from July. oil was set to post its first weekly gain in almost two months as the Fed’s latest stance triggered a bullish pulse across markets. Gold also headed for a weekly advance. US After Hours COST +1.3% higher on earnings and $15 spec div; RTX names a new CEO; NX -14%, SCHL -12%, LEN -3.5% lower on earnings.
Nikkei +0.87% Hang Seng +2.04% CSI -0.32% Shanghai -0.52% Shenzen -0.51%
Eur$ 1.0982 CNH 7.1162 CNY 7.1103 JPY 142.08 GBP 1.2759 CHF 0.8677 RUB 89.4873 TRY 29.0430 WTI$ 71.70 +0.17% Gold 2,035 -0.05% BTC 42,586 -0.94% ETH 2,265 -1.50%
S&P +0.10% Nasdaq +0.12% EuroStoxx +0.06% FTSE +0.27% Dax +0.06% SMI -0.009%
Macro :
- Real Estate Soars as Second-Best Performing Group in S&P (1)
- New Sanctions Bar UK Entities From Trading Most Russian Metals
- ECB and BOE Reluctant to Join Fed in Pivoting Toward Rate Cuts
- Andurand’s Main Hedge Fund Slumps 54% After Roller-Coaster Ride
- EU Agrees on Russia Sanctions in Key Show of Support for Kyiv
- Gundlach’s 3% Call for 10-Year US Yield Aided by Recession Study
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- STM GY : Stabilus Proposes Dividend of €1.75 Per Share
- SY1 GY : Symrise Revises FY2023 Guidance, Confirms Long-Term Targets
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- TIGO SS : Millicom Raises Target for 2022-2024 Equity Free Cash Flow
- TRN LN : UK Abandons Plan to Create An Online Rail Ticket Retailer
- TWT US : Elon Musk told lenders they would not lose money on Twitter deal
- ULVR LN : Unilever in Talks to Sell Elida Beauty to Yellow Wood: Reuters
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