VOT Research Report
Market Analytics and Considerations
Following hawkish remarks from a Fed member, the dollar selloff was stopped overnight.
Salient Points
Asian Indices:
The ASX 200 index for Australia dropped by 4.4 points (-0.06%), closing at 7,153.60.
The Nikkei 225 index of Japan is now trading at 28,263.57 after rising 817.47 points (0.0298%).
The Hang Seng index in Hong Kong has increased by 505.98 points (2.92%) and is now trading at 17,831.64.
China’s A50 Index is now trading at 12,424.99 after increasing by 161.88 points (1.32%).
Europe and the UK
The UK’s FTSE 100 futures are up 6.5 points (0.09%) at the moment, while the money market is anticipated to begin at 7,324.54
The money market is presently anticipated to start at 3,882.50, while the Euro STOXX 50 futures are currently up 14 points (0.36%).
The cash exchange is presently anticipated to open at 14,256.86, while Germany’s DAX futures are currently up 32 points (0.22%).
The US Futures
Currently, DJI futures are lower 91 points (-0.27%).
Presently, the S&P 500 futures are off 63.25 points (-0.53%).
Futures for the Nasdaq 100 are now off -13 points (-0.32%).
The first face-to-face meeting between US President Joe Biden and Chinese President Xi Jinping is scheduled. The meeting takes place in Bali before of the two-day G20 summit on Tuesday and Wednesday, and it is anticipated that they will talk about North Korea, Taiwan, and the Ukraine-related concerns.
In Asia, stocks were balanced, with China’s benchmark indices taking the lead due to news that China is gradually loosening some COVID-19 regulations.
A quiet economic docket during the Asian session allowed markets to calm down after recent turbulence, and volatility was relatively moderate relative to the ranges experienced on Thursday and Friday. Due to a price retracement against previous advances, the US dollar is presently the strongest major currency and indeed the Swiss franc is the least.
Christopher Waller, a member of the Fed, emphasized that the markets had already responded to the US inflation report “far in advance” and that it was “simply one data point.” He cited the “enormous” pace of inflation at 7.7% in saying that the Fed will need to see a run of inflation readings (coming in weaker) before the Fed can cease increasing.
