Daily Market Brief
March 18 2024
FOREIGN EXCHANGE MARKETS | (Sources: Bloomberg / Reuters) |
EUR/USD
The EUR/USD pair trades softer below the 1.0900 mark during the early Asian session on Monday. ECB policymaker Pablo Hernandez de Cos said on Sunday that the central bank left borrowing costs at a record high this month but said it had made good progress in bringing down inflation and has started a preliminary discussion about monetary easing. Investors await the US FOMC interest rate decision on Wednesday.
GBP/USD
GBP/USD appears to reverse its decline initiated on Thursday, hovering around 1.2730 during the Asian session on Monday. Consumer Inflation Expectations, as released by the BoE on Friday, rose by 3.0%, showing a decrease from the previous uptick of 3.3%. This data prompted markets to increase their wagers on a BoE rate cut in June, potentially weakening the GBP and consequently pressuring the GBP/USD pair downward.
USD/JPY
The Japanese Yen continues to be undermined by the uncertainty over the BoJ's policy stance. Hawkish Fed expectations act as a tailwind for the USD and lend support to the USD/JPY pair. Investors now look to the BoJ and Fed policy decisions before placing fresh directional bets.
INTERNATIONAL EQUITY MARKETS | (Sources: Bloomberg / Reuters) |
UNITED STATES OF AMERICA
The S&P 500 fell on Friday and notched its second-straight weekly loss, with technology stocks under pressure as inflation concerns remain front and center ahead of the Federal Reserve's policy meeting next week. Investors remain hyper vigilant after a slew of data from earlier in the week. February's PPI advanced more than economists anticipated.
EUROPE
European markets closed lower on Friday, as investors remained cautious on the path of inflation ahead of rate decisions by the BoE and Federal Reserve next week. Household goods led losses, down 1.8%, while telecoms added 1.5%. It comes after data on Thursday showed the U.S. PPI rose at a faster-than-expected 0.6% in February.
ASIA
Asia-Pacific markets largely fell Friday after producer prices in the U.S. grew at a faster than expected 0.6% in February. Meanwhile, the People's Bank of China kept its one-year medium term lending facility rate unchanged at 2.5%. Japan's largest trade union, Rengo, said that workers at the country's biggest firms are set for the sharpest wage spike in more than three decades.
MUST READ | (Source: Bloomberg/ Forexlive) |
Supply chains are shifting between China, Korea, Taiwan, and the US
Asia's supply chains are shifting. In December 2023, combined exports from Korea and Taiwan to the US exceeded their exports to mainland China for the first time in two decades, according to Goldman Sachs Research. The changes are taking place amid several important shifts. China's unit labor costs have risen and its industrial structure is becoming more sophisticated. China's supply chains for the electronics industry are potentially vulnerable to these changes. Some tech imports into China are still used mostly for re-export - for instance, 57% of China's microchip imports in 2023 were re-exported. The large portion of imports for re-export in the electronics industry means that relocation of factories assembling technologies such as smartphones from China to elsewhere in the region could redirect both imports and exports of tech products away from China. Companies' post-pandemic focus on supply chain diversification and the US's supply chain resilience programs are also reshaping trade in the region. Supply chains around advanced microchips have been shifting away from China since the pandemic outbreak in early 2020. Notably, changes in trade flows for smartphones have accelerated since the pandemic with rapid declines in imports of made-in-China smartphones in the US and Europe. Accelerating innovation in AI and the US drive for supply chain resilience have boosted US demand for AI chips. All these developments have led to sharp increases in US-bound exports from Korea and Taiwan of AI servers and their advanced chip components.
Fx rates | Last | High | Low | % Daily | % Weekly | % YTD |
GBP-USD | 1.2736 | 1.2742 | 1.2726 | 0.00 | -0.61 | 0.04 |
USD-JPY | 149.28 | 149.33 | 148.91 | 0.16 | -1.56 | -5.52 |
USD-CHF | 0.8838 | 0.8841 | 0.8828 | 0.00 | -0.72 | -4.80 |
Commodities | Last | High | Low | % Daily | % Weekly | % YTD |
Gold | 2148.42 | 2157.56 | 2146.15 | -0.35 | -1.57 | 4.14 |
Silver | 25.03 | 25.21 | 24.95 | -0.64 | 2.28 | 5.17 |
Crude Oil | 81.46 | 81.53 | 81.01 | 0.52 | 4.53 | 13.12 |
Bitcoin | 68352.51 | 68912.79 | 66787.02 | 0.12 | -6.57 | 60.80 |
Etherium | 3622.67 | 3676.74 | 3557.16 | -0.28 | -9.25 | 58.73 |
Period | 1 M | 3 M | 12 M | |||
SOFR | 5.33 | 5.33 | 5.06 | |||
Notes/Bonds | 2 Y | 10 Y | 30 Y | |||
US | ||||||
BTP - BUND | 0.50 | 1.26 | 1.68 | |||
GILTS | 4.33 | 4.10 | 4.53 | |||
Index | Close | % Daily | % M | YTD | Futures | % Change |
DJIA | 38714.77 | -0.49 | 0.22 | 2.72 | 38691.18 | 0.00 |
S&P | 5117.09 | -0.65 | 2.23 | 7.28 | 5101.67 | 0.00 |
Nasdaq | 15973.17 | -0.96 | 1.25 | 6.41 | 17854.75 | 0.00 |
DJ EuroStoxx50 | 4986.02 | -0.14 | 4.62 | 10.28 | 5016.90 | 0.00 |
FTSE 100 | 7727.42 | -0.20 | 0.20 | -0.08 | 7734.00 | 0.00 |
CAC 40 | 8164.35 | 0.04 | 5.10 | 8.23 | 8208.60 | N/A |
DAX | 17936.65 | -0.03 | 4.79 | 7.07 | 18032.44 | 0.00 |
IBEX 35 | 10597.90 | 1.02 | 7.20 | 4.91 | 10619.20 | N/A |
FTSE MIB | 33940.03 | 0.46 | 6.96 | 11.82 | 33735.00 | N/A |
Nikkei | 39740.44 | 2.67 | 3.26 | 18.76 | 39520.00 | 2.94 |
Hang Seng | 16720.89 | 0.22 | 2.56 | -1.70 | 16773.00 | 0.32 |
DFM General | 4262.48 | -0.40 | -0.31 | 4.57 | N/A | N/A |
MSCI Tadawoul | 12762.43 | 0.27 | 2.08 | 6.64 | N/A | N/A |
PRIOR_CLOSE_MID | CHG_PC CHG_PC CHG_PCT_ | |||||
Leb. Mrkts | Closing Px | High | Low | % Daily | % Weekly | YTD |
Solidere B | 72.20 | 72.25 | 72.05 | -3.73 | -3.73 | -19.73 |
MAIN WEEKLY EARNINGS | ||||||
Company | Ticker | Market Cap | Date | Time | Estimate | Year Ago |
Science Applicatio | SAIC US | $ 7.43B | 18-Mar-24 | Pre-mkt | 1.46 | 2.04 |
Stoneco LTD | STNE US | $ 5.44B | 18-Mar-24 | Aft-mkt | 1.47 | 0.72 |
Caleres Inc | CAL US | $ 1.38B | 19-Mar-24 | Pre-mkt | 0.85 | 0.65 |
Tencent Music En | TME US | $ 17.73B | 19-Mar-24 | Pre-mkt | 0.97 | 0.91 |
ZTO Express Caym | ZTO US | $ 17.73B | 19-Mar-24 | Aft-mkt | 10.95 | 8.54 |
ECONOMIC CALENDAR
(18-03-24) EA - CPI YoY / MoM
(19-03-24) JP - Industrial Production MoM
(19-03-24) DE - ZEW Survey Expectations
(19-03-24) CA - CPI NSA MoM / CPI YoY
(19-03-24) US - Housing Starts
(19-03-24) JP - BOJ Policy Balance Rate
(20-03-24) UK - CPI MoM / YoY / Core YoY
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Tel: +961 1 325405/6/7/9
Disclaimer: This report is published for information purposes only. The information herein has been compiled from, or based upon sources we believe to be reliable, but we do not guarantee or accept responsibility for its completeness and accuracy. This document should not be construed as a solicitation to take part in any investment, or as constituting any representation or warranty on our part. The investment risks described herein are not purported to be exhaustive, any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment. Investment, Capital Market and Treasury products are subject to Investment risk, including possible loss of principal amount invested. Past performance is not indicative of future results: prices can go up or down. Investors investing in investments and/or treasury products denominated in foreign (non-local) currency should be aware of the risk of exchange rate fluctuations that may cause loss of principal when foreign currency is converted to the investor's home currency. Client understands that it is his/her responsibility to seek legal and/or tax advice regarding the legal and tax consequences of his/her investment transactions. The consequences of any action taken on the basis of finformation contained herein are solely the responsibility of the recipient.
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Banque Bemo SAL published this content on 18 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2024 08:08:06 UTC.