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23 Jan 2024

More policy support in China?

• Mixed markets. US equities a little higher, with long-end bond yields also rising. USD firmer against EUR & GBP. AUD consolidated near ~$0.6580.• China stimulus. Reports of measures aimed at supporting equities gave Chinese stocks & CNH a shot in the arm. BoJ holds steady but gave a ‘hawkish’ hint.• NZ CPI. Headline NZ inflation slowed as expected, but domestic inflation remains sticky. AUD/NZD dipped post this mornings NZ CPI release. A varied performance across markets over the past day, though most moves have been modest. US equities ended the day higher. The S&P500 (+0.3%) is just shy of...

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Market Moves Run Out of Oomph

After a strong start to the year, rallies in US equity markets and the dollar appear to be nearing exhaustion this morning. S&P 500 futures are pointing to a flat open and the greenback is inching higher on a stabilization in ten-year Treasury yields above the 4.1-percent threshold. The Canadian dollar is drifting lower as traders brace for a cautiously-dovish central bank decision tomorrow. The Japanese yen is modestly stronger after the Bank of Japan left policy settings intact yet signalled a move out of negative rates territory was still in the offing. Policymakers left the short-term benchmark rate at...

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