By Vivek Kumar
Moving Markets Today: Global Stocks Surge in Tech Rally, Oil Prices Dip, Bitcoin Hits Five-Week Low; Attention Shifts to UK Retail Sales and U.S. Michigan Sentiment Data
U.S. stocks, led by the S&P 500 near record highs, surged on AI optimism, benefiting chipmakers like Nvidia. Asian shares followed suit in a global tech rally. Oil prices declined due to worries about reduced Chinese demand. Bitcoin hit a five-week low at $40,484 after U.S. approval of spot bitcoin ETFs prompted profit-taking. Investors are now awaiting Friday’s data, including December UK Retail Sales and the preliminary US Michigan Consumer Sentiment Index. Here are five key takeaways for your day.
Japan’s Core Inflation Decelerates for Second Consecutive Month, Easing Pressure on BOJ
Japan’s core inflation eased for the second straight month, lessening the urgency for the Bank of Japan to reconsider its negative interest rate policy next week. Official data released on Friday showed the core consumer price index, excluding volatile fresh food prices, increased by 2.3% in December, down from 2.5% in November and 2.9% in October.
U.S. Congress Greenlights Spending Bill, Steers Clear of Government Shutdown
The US House of Representatives passed a short-term spending bill on Thursday, preventing a government shutdown. This allows lawmakers to concentrate on negotiations for aid to Ukraine. The Senate had already approved the bill earlier in the day. The legislation now awaits President Joe Biden’s signature, extending current government spending levels for certain agencies until March 1 and others until March 8.
Oil Prices Slide Amid Concerns Over Weakening Chinese Demand
Oil prices slipped after a recent rally due to a combination of geopolitical tensions, disruptions in U.S. oil production from severe weather, and concerns about sluggish demand growth in China. Brent crude fell 0.3% to $78.86 per barrel, and U.S. West Texas Intermediate crude slid 6 cents to $74.02. Despite a 2% gain on Thursday based on positive forecasts from the International Energy Agency (IEA) and OPEC, both benchmarks are expected to close the week with a modest 1-2% increase.
Late on Thursday, the Houthi militia, with backing from Iran, launched two ballistic missiles aimed at a tanker owned by the United States. The missiles landed close to the vessel, but thankfully, there were no injuries or damage, according to the U.S. military.
What’s Coming Up
There are no major market-moving economic indicators expected to released today. However, investors will pay attention to Germany’s Producer Price Index (PPI), UK retail sales data for December, U.S. existing home sales, and the preliminary U.S. Michigan consumer sentiment index on Friday. Also, European Central Bank President Lagarde is set to discuss “the Global Outlook”.
Asian Markets Surge as Global Tech Frenzy Takes Centre Stage
The S&P 500 rose by 0.88% to close at 4,780.94 points, just 0.3% below its January 2022 record. The Nasdaq gained 1.35%, and the Dow Jones increased by 0.54%. U.S.-listed shares of Taiwan Semiconductor Manufacturing surged nearly 10%, with Nvidia and other tech giants also reaching record highs. Asian markets responded positively, with Japan’s Nikkei 225 rising by 1.6%, and Hong Kong’s Hang Seng index increasing by 0.9%. Treasury yields in Asia saw a modest increase, and the dollar index remained stable. Gold rose by 0.1% to $2,023.89 per ounce, while Bitcoin hit a five-week low at $40,484.
