Asian equities firm as metals rally while US rates expectations stay anchored
Today’s Market Mood, Key Events, Market Moving News.
📈 Market Mood:
⚪ Neutral – Mixed asset performance with strength in metals and Asia, while US equities and rates remain stable.
🗓 Key Events:
13:30 London / 08:30 New York – US Core PPI m/m – Measures upstream inflation pressure for rates outlook.
13:30 London / 08:30 New York – US Retail Sales m/m – Signals strength of US consumer demand.
🌐 Market Moving News:
Asian shares rise as metals lead a commodities rally.
Silver breaks above $90 for the first time, gold near record levels.
Dollar rebounds as CPI data comes in line and banks back Powell.
Asset Snapshots:
⚪ S&P 500: Neutral – Flat price action with limited follow-through after recent highs.
⚪ USD (DXY): Neutral – Dollar slightly softer but holding near recent levels.
🟢 Gold: Bullish – Prices rise alongside silver amid strong metals demand.
⚪ Oil: Neutral – Pullback after rally as Iran and Venezuela headlines balance supply risks.
⚪ Bitcoin: Neutral – Trading sideways with no clear momentum.
Non-US Indices:
🟢 Nikkei: Bullish – Japanese equities push higher as yen weakness supports stocks.
🔴 DAX: Bearish – European equities lag with weaker momentum.
⚪ HK50: Neutral – Modest gains but still range-bound.
Volatility S&P 500 Index (VIX): 15.97 – Rising volatility suggests slightly higher caution but no stress signal.
Fed Watch (Jan 2026): Markets price a 97.2% chance of a hold at 350-375, with 2.8% expecting a cut.
Credit Markets: HYG flat while LQD rises, signaling stable risk appetite and no credit stress for equities.
Bond Curve: Short-term yields ease while 10Y is flat, pointing to steady rate expectations and a balanced macro tone.
FX Flows: USD/CNH ticks higher while EUR/USD slips, suggesting mild risk caution without broad macro stress.
Macro Bias:
Shows overall bullish, bearish, or neutral trends across major markets based on key economic data. It reflects how indicators like GDP, inflation, employment, retail sales, and PMIs are performing. When data improves, the bias turns bullish; when it weakens, bearish; when mixed, neutral.
Indices:
⚪ S&P 500: Neutral
⚪ Nasdaq 100: Neutral
Currencies:
🟢 USD: Bullish
🔴 EUR: Bearish
🔴 JPY: Bearish
⚪ GBP: Neutral
⚪ AUD: Neutral
🔴 CAD: Bearish
Commodities:
⚪ Gold: Neutral
⚪ Oil: Neutral
Crypto:
⚪ Bitcoin: Neutral
🪙 Price Action Notes:
Metals remain strong relative to equities.
Watch US PPI and Retail Sales for rate-sensitive moves.
Yen weakness continues to support Japanese equities.
Disclaimer:
This newsletter is for information only and not financial advice. Markets carry risk, and past performance does not guarantee future results. Always do your own research or consult a qualified advisor before making investment decisions.