- BoJ Gov Ueda says Japan's inflation is rising - will make appropriate policy decision
- Reuters poll: 83% of analysts surveyed expect BOJ to end negative rates in April
- Federal Reserve speakers Thursday include Jefferson, Harker, Kashkari, Cook and Waller
- Its official, Japan's Nikkei 225 index has hit a new all-time high
- Bank of England Monetary Policy Committee member Megan Greene speaking Thursday
- RBNZ survey shows household 2-year inflation expectations rising to 3.2% (prior 3.0%)
- Bank of Korea Governor Rhee sees potential for rate cuts
- Major Australian port used to export iron ore has started clearing ships ahead of cyclone
- Toyota has cut its March and April domestic production plans
- RBNZ meet next week, their bark is likely to be worse than their bite - no hike expected
- China bans major institutional investors from selling equities at the open and close
- PBOC sets USD/ CNY reference rate for today at 7.1018 (vs. estimate at 7.1854)
- Analysts warn that "U.S. Ether ETFs Could Exacerbate Concentration Risk"
- Japan preliminary February PMI: Manufacturing 47.2 (prior 48.0)
- China financial media report that small banks have cut deposit rates
- US Congressman Gallagher is leading a delegation on a visit to Taiwan
- China's Foreign Minister says China's development is in line with the logic of history
- WSJ Fed insider Timiraos - "Minutes Show Unease Over Premature Cuts"
- UBS expects a June 25bp FOMC rate cut (from May previously), 75bp total in 2024 (from 100)
- Ratings agency S&P says FOMC will cut by 25bp in June, with 2 more to follow by year end
- Australia preliminary PMI February: Manufacturing 47.7 (prior 50.1)
- New Zealand data: January Trade deficit much larger than December (big drop for exports)
- Oil - private survey of inventory shows headline build much larger than was expected
- Nvidia (NVDA) earnings Q4 2023: REV. $22.1B (EST. $20.12B) EPS 5.16 (EST. 4.53)
- Forexlive Americas FX news wrap: Record tail in the 20-year auction
- Trade ideas thread - Thursday, 22 February, insightful charts, technical analysis, ideas
The early part of the session, pre-Tokyo, was focused on Q4 earnings from US tech giant Nvidia (NVDA). The results showed solid beats on the key metrics and positive guidance. After some volatility the shares rose in the aftermarket, broader US equity index futures went higher also. The positive sentiment engendered by NVDA was cited as one of the factors that drove Japan’s Nikkei 225 to a new all-time high. Its previous peak was in late December of 1989.
From China today was news that small banks have cut deposit rates. Also that China has banned major institutional investors from selling equity holdings during the 30 minutes at the open and close of each trading day. Mainland and Hong Kong stocks gained again today.
An item that hasn’t attracted a lot of attention was the inflation expectations survey from the Reserve Bank of New Zealand. Two-year expectations rose from the previous survey (see bullets above for more info). The RBNZ meet next week (February 28). Most analysts expect the Bank to leave its cash rate on hold, but that is not a unanimous view. The higher expectations results released today will keep the possibility of a rate hike in the conversation.
Major FX was a little mixed on the session, EUR. AUD, NZD, GBP all added on a few points but USD/JPY rose also. A weaker yen was another of the factors cited for the new fresh high for the N225. As I post Bank of Japan Governor Ueda has remarked on rising inflation and that the Bank will make appropriate policy choices, giving the yen a boost.
