The markets are treading water. The S&P 500 closed 0.1% higher and the Nikkei 0.02% higher. The activity warms up today in the equity world: Microsoft announces their earnings, and data-wise, there is Eurozone economic confidence, GDP, and consumer confidence, while in the US, there are the JOLTS job openings. But the real action is tomorrow...
First up, we have the BOJ decision; +6bp is priced into the curves. A hawkish rhetoric is required to continue this Yen rally. We have seen an 8% rally in Yen since the intervention process began, and 152 is looking like a base until the macro environment changes. Then there is the Fed. OIS is pricing -27bp and a total of -66bp for the whole of 2024. Amidst all this, we have Month End fixing, and Asian markets have performed poorly: the Nikkei -2.67%, Hang Seng -4.03%, and CSI -3.07%.
Domestically, Chancellor Reeves announced delays to infrastructure projects and agreed to pay Junior Doctors a backdated 22% pay rise. In other markets, Bitcoin fell 1.4% to $66,443.15, Ether fell 0.6% to $3,301.92, West Texas Intermediate crude fell 0.3% to $75.56 a barrel, and spot gold rose 0.2% to $2,389.25 an ounce. The yield on 10-year Treasuries sits at 4.18%, but for how long?
**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
