MARKET WRAP
As of Fri 24 Jan, Singapore Time zone UTC+8
FX MOVES
U.S. Dollar Index, +0.19%, 97.484 (Sentiment: Negative)
USDJPY, -0.25%, $109.57 (Sentiment: Neutral)
EURUSD, +0.11%, $1.1096 (Sentiment: Neutral)
GBPUSD, -0.18%, $1.3118 (Sentiment: Neutral)
USDCAD, -0.06%, $1.3128 (Sentiment: Positive)
AUDUSD, +0.06%, $0.6849 (Sentiment: Neutral)
NZDUSD, +0.35%, $0.6616 (Sentiment: Neutral)
MARKET MOVES
S&P500, +0.32%, 3,330.38 (Sentiment: Positive)
Nasdaq, +0.81%, 9,270.00 (Sentiment: Positive)
Nikkei Futures, -0.98%, 23,795.44 (Sentiment: Positive)
MARKET OUTLOOK : The S&P 500 lost as much as 0.6% on Thursday amid concerns about growth and valuation, but an intraday rebound gathered steam after the World Health Organization declined to declare an international virus alert or public health emergency for the coronavirus. The benchmark index finished the session up 0.1%.
SUMMARY OF NOTABLE EVENTS
EUROPEAN CENTRAL BANK MONETARY POLICY
The ECB kept its ultra loose monetary policy rates unchanged on Thursday, said it would reconsider the inflation target that defines is core price stability mandate. In ECB’s Q&A, Lagarde commented that Governments with fiscal space should be ready to act and if growth does not pick up, they have to decide on which part of the yield curve they want to operate on. The fall in the euro through the press conference shows that the market was leaning towards something hawkish, at least on negative rates. Instead Lagarde was pushing governments to spend and not offering any hint about a hawkish shift.
NEW ZEALAND INFLATION PRINT
The New Zealand inflation data for Q4 came in at 0.5% q/q (expected 0.4%) and 1.9% y/y (expected 1.8%). Kiwi popped higher as a result.
CHINA VIRUS DEATH TOLL INCREASES TO 25 AS TRAVEL LIMITS EXPANDED
China reported that deaths from a new coronavirus rose to 25 as it rushes to halt the SARS-like disease, even as the World Health Organization stopped short of calling the infection a global health emergency. Restrictions on travel and public gatherings have been implemented in Wuhan, the city in central China where the virus was first detected, as well as in several nearby municipalities. Hong Kong and Beijing are canceling planned holiday activities, according to local officials and state media. Investors took a cautious stance ahead of a week long trading break, pushing the Shanghai Composite down by -2.80%.