- Tuesday's Asian session saw modest gains in the quotations of most stock market indices, even though moderate downward pressure was evident on Wall Street yesterday. The exception in this aspect is the Chinese market, where futures there are losing heavily and thus reducing the wave of optimism from yesterday.
- Despite the pullback in Chinese stocks, President Xi reported that he is confident that the country will achieve its economic target for this year, which is GDP growth of around 5%. However, the favorable tone of the comments is disrupted by the foreign trade balance report, where once again we see readings well below expectations. Imports fell by 3.9% y/y and exports rose by 6.7% against expectations of 8.5%.
- The RBA decided to keep interest rates unchanged at 4.35%, in line with market expectations. However, the statement softened the Bank's previously hawkish stance. The report may say that the bank is gaining confidence that inflationary pressures are falling in line with recent forecasts, and the statement removed the “excluding nothing” statement.
- RBA Bullock's comments, however, turned out to be a bit more hawkish. The banker commented that some of the data was slightly weaker than expected, which gave the board some confidence that inflationary pressures are abating, but in vain to look for a definitive victory over inflation.
- Bullock maintains that core inflation remains too high, but at the same time, when asked about rate cuts in the near term, she did not outright reject the idea. Investors are currently pricing in a ~56% chance of a 25 basis point rate cut next February.
- There aren't many key publications scheduled on the economic calendar today for the economy and investors themselves, but investors' attention may nevertheless turn to the final CPI data from Germany.
- In the forex market, big movements are currently observed on the Australian dollar, which is losing heavily to other currencies after the RBA decision. The NZD is also losing strongly.
- Bitcoin is currently stabilizing in the $97,000 zone after yesterday's sell-offs.
- Gold is extending gains after breaking out of consolidation and is currently trading near $2,670 per ounce.
Heatmap of volatility in the FX market at the moment. Source: xStation
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
