Oil breaks US$100, Wall Street retreats and bond yields rise, inflation is becoming the market’s biggest risk again Global markets are starting Thursday in a more defensive position. Brent crude has broken above US$100 a barrel , U.S. Treasury yields are pushing higher, and Wall Street fell for a third straight session as investors reassess whether central banks may need to keep tightening rather than easing. For Malaysian investors, the key chain today is increasingly clear: Oil → inflation → interest rates → bond yields → USD/MYR → Bursa valuations. 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,636.36, -0.48% 🇺🇸 Dow Jones 52,380.66, -0.77% 🇺🇸 Nasdaq 26,253.34, -0.64% 🇲🇾 FBM KLCI 1,714.34, virtually flat 💵 USD/MYR ~4.06 🇺🇸 U.S. 10Y Treasury ~4.84% 🇺🇸 U.S. 2Y Treasury ~4.42% 🥇 Gold ~US$4,396/oz 🛢️ Brent crude US$101.21/bbl 🛢️ WTI crude US$96.05/bbl ₿ Bitcoin ~US$79,300 🇯🇵 Nikkei ~64,760, -0.6% this morning Brent jumped about 3.4% Wednesda...
Japanese stocks surged while the yen weakened on Thursday as expectations for further tightening in Japan's monetary policy faded. The Nikkei index jumped 2.2%, buoyed by a weaker yen, which improved the outlook for Japanese exporters. In contrast, MSCI’s Asia-Pacific index (excluding Japan) dropped 1%, and Hong Kong's Hang Seng fell 2.5%, taking a breather after a significant rally.
The yen dropped 2% overnight, with the dollar rising 0.3% to 146.84 yen, following comments by Japan’s newly-elected Prime Minister Shigeru Ishiba and Bank of Japan Governor Kazuo Ueda, signaling no immediate rate hikes.
Analysts believe this marks a shift in the BOJ's policy stance, likely delaying any tightening until 2025. Futures indicate less than a 50% chance of a 10 basis point hike by December, with rates expected to remain low at 0.25% until the end of next year.
Meanwhile, China’s mainland markets were closed for a holiday, and Hong Kong's Hang Seng declined after a 6.2% surge the previous day, boosted by China's stimulus measures. In the US, Treasury yields rose following a strong private payrolls report, reflecting a healthy US labor market.
Brent crude futures climbed 1.1% to US$74.68 a barrel, amid concerns over the escalating Middle East conflict. Gold remained near its record high at US$2,655.90 per ounce.
Comments
Post a Comment