Asia markets are set to open higher following a strong rebound in US stocks overnight amid cooling geopolitical tensions. The Russian Defence Ministry said it started returning some troops to the deployment base. ASX 200 futures are up 1%, pointing to a higher open on the S&P/ASX 200.
The three major indices all finished higher, led by tech shares. The tech-heavy Nasdaq jumped 2.5%, the Dow Jones Industrial Average was up 1.2%, and the S&P 500 rose 1.6%.
Technology and consumer discretionary stocks led the broader market gains, with all of the Mega Cap companies closing higher. Tesla shares gained more than 4%. Nvidia shares jumped 9%, and Advanced Micro Devices was up near 6%. AMD finalized the purchase of Xilinx Inc. valued at $US50 billion on Monday.
The US January Producer Price Index recorded at 1% MoM, more than economists forecasted, the fastest monthly increase since May 2021. But the yearly increase slowed from 9.8% to 9.7%, indicating price pressure might be moderating. The January Fed meeting minutes to be released tomorrow will be closely watched by investors for clues of the rate-hike speed.
The 10-year US Treasury yield spiked to 2.04% after the higher-than-expected PPI data was released. The bond markets took a breather amid cooling Ukraine tension. The 2-year Treasury yield steadied at 1.575%.
Safe haven asset gold retreated from a 3-month high, with the geopolitical tension cooling. The precious metal was down $US15, to $US1,874.5 per ounce.
The soaring crude oil price also pulled back from 8-year highs. WTI futures fell 3.7%, to $US91.92.
USD weakened as risk-off sentiment cooled. The US dollar index fell 0.38%, to 95.987. Euro was up 0.44% against the greenback, with the geopolitical tension relieved in the region. The commodity currencies, including AUD and NZD, were both up 0.3% against the US dollar, but the Canadian dollar was flat amid falling oil prices.
The crypto markets rebounded sharply on Wednesday as risk-on sentiment returned. Bitcoin was up 4.42%, to above $US44,000. Ethereum jumped 7.5%, to above $US3,100. The two leading digital tokens are up by 34% and 44% from their lows in January at $US32,917 and $US2,159 respectively.
Disclaimer: CMC Markets is an order execution-only service. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.