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Hong Kong-listed electronic parts stocks fluctuated and retreated, with Q Technology (01478.HK) falling more than 4.5%, AAC Technologies (02018.HK) falling more than 3.5%, and Sunny Optical Technology (02382.HK) falling more than 3%.Hong Kong-listed tourism stocks fluctuated upward, with Ctrip Group (09961.HK) rising nearly 4%, Tongcheng Travel (00780.HK) rising more than 2.5%, and Guangdong Transport (03399.HK) following suit.The Swiss franc rose to 0.8958 against the dollar, a two-month high.Futures, February 24, according to market news, last Friday night, the Trump administration of the United States is pressuring Iraq to allow Kurdish oil exports to resume, otherwise it will face sanctions together with Iran. Oil prices have fallen back significantly. Iraqs Deputy Minister of Oil said on Sunday that once oil transportation resumes, Iraq will export 185,000 barrels per day from oil fields in the Kurdish region through the Iraq-Turkey pipeline, and gradually increase to 400,000 barrels per day. All procedures for resuming pipeline exports have been completed, which may resolve a dispute that has disrupted the flow of crude oil for nearly two years. However, resuming pipeline transportation may put Iraq in a dilemma. On the one hand, it has to cut production, and on the other hand, Trump called on OPEC+ to lower oil prices. In addition, the President of Ukraine said that he is willing to resign as president if it can bring peace, and pay attention to the acceleration of the Russian-Ukrainian negotiations. In the short term, oil prices are still volatile, and the focus is on the supply side.Hong Kong stocks Hang Seng Index and Hang Seng Tech Index both turned positive, after the Hang Seng Tech Index had previously fallen rapidly by more than 1%.

USD / JPY Strikes Above 136.20 As Fed Rate Increase Worries Return

Daniel Rogers

Mar 02, 2023 16:07

 

 

The USD / JPY pair is battling in the Asian session to maintain its auction above 136.40, while the downside looks to be supported around 136.00. The asset is expected to continue rising and surpass the 136.40 resistance mark as investors foresee the Federal Reserve (Fed) raising interest rates to strengthen its defense against persistent inflation.

 

Following a down day on Wednesday, S&P500 futures recorded modest gains during the Asian session, signaling a minor improvement in investors' risk appetite. Despite this, the market as a whole is very risk adverse. The spread of the US Dollar Index (DXY) is expected to narrow after a period of chaotic swings.

 

It indicates that the Federal Reserve's (Fed) officials' hawkish stance has revived US Treasury prices.

 

Raphael Bostic, President of the Atlanta Fed, predicted that the central bank would increase the terminal rate to a level of 5.00% to 5.25% in view of the Consumer Price Index's (CPI) enduring nature. The Fed policymaker also thinks the central bank will continue to have a high final rate after 2023. Additionally, Fed Chief Jerome Powell has reaffirmed that an early rate cut could have disastrous consequences for the inflation scenario.

 

It is clear that a future rise in the price index is expected after Wednesday's release of the US ISM Manufacturing PMI. The New Orders Index and Manufacturers' Prices Paid were able to show that the inflation scenario is getting more complicated despite the February PMI figures' failure to wow the market. Figures increased to 47.0 from 43.7 anticipated and 42.5 earlier published, indicating a strong order book. The Manufacturing Price Paid increased to 51.3 from 45.0, as opposed to the average forecast of 45.0, and from 44.5 in the previous report, suggesting that the Producer Price Index (PPI) may soon show a surprise increase.

 

On the Tokyo front, the Japanese Yen is being impacted by a string of dovish remarks from Bank of Japan (BoJ) officials. Following dovish remarks from BoJ Governor-nominee Kazuo Ueda and BoJ Deputy Governor Ryozo Himino, board member Junko Nakagawa also considered the present monetary policy appropriate. "An expansionary strategy is absolutely essential for maintaining the economy and increasing earnings," he said.


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