Semiconductor stocks have driven a rally in Asian markets, while the dollar advanced for a 5th session running on the back of strong US labour market data.
Last night we talked about the prospects of the NG for the two-year period 2024-2025. This time, with the help of Matthew French from the EIA, we will do the same for WTI. Obviously in this case the situation could change quickly and even radically depending on how tensions in the Middle East and the Red Sea evolve.
Source: Matteo Marchetti, KTM Market Analyst
For all the latest market developments follow Matteo @MMTradingKTM and Key to Markets @keytomarkets on Telegram
Japan’s Nikkei and Taiwan’s stock market have been propelled by a significant surge in semiconductor stocks. This rise is largely attributed to TSMC’s projection of over 20% revenue growth. This trend starkly contrasts with the general global market movements and highlights the tech sector’s robust performance.
Chinese markets, including the CSI 300, are facing a downturn for the third consecutive week. This decline reflects the ongoing concerns over China’s economic recovery and the effectiveness of stimulus measures. The market’s reliance on state-backed fund interventions further underscores these challenges.
The US dollar’s rise is a key narrative, influenced by perceived resilience in the US economy and trader scepticism about imminent rate cuts. Conversely, the Japanese yen is struggling, impacted by a mix of economic data and a catastrophic earthquake, leading to a reassessment of the Bank of Japan’s policy outlook.
In the US, robust labour market data have contributed to a rally on Wall Street, complicating the Federal Reserve’s decision-making regarding rate cuts. This has led to adjustments in market expectations for the Fed’s policy direction, with implications for both equity and bond markets.
The ECB’s stance, particularly President Christine Lagarde’s comments, has tempered market expectations for rate cuts. This cautious approach by the ECB is influencing European markets, limiting the euro’s fall against the dollar and affecting investor sentiment.