- Asian markets edged higher with Japan leading gains, as the Nikkei surged 2.1% following stronger-than-expected Tokyo inflation data. Chinese stocks advanced modestly with CSI 300 up 0.4%, while South Korea's KOSPI fell over 1.5% amid political turmoil surrounding an impeachment vote for acting president Han Duck-soo.
- Tokyo core CPI accelerated to 2.4% in December from 2.2% in November, keeping alive expectations for a BOJ rate hike. Some BOJ policymakers saw conditions aligning for a near-term move, with one predicting action "in the near future," though views remained divided on timing amid uncertainties around incoming President Trump's policies.
- The Japanese yen strengthened after Finance Minister Kato reiterated warnings against excessive currency moves, with USD/JPY easing 0.3% to 157.59. The dollar index held near two-year highs, keeping most Asian currencies under pressure. USD/INR touched new record highs above 85.7.
- China's industrial profits declined 7.3% year-on-year in November, improving from October's 10% drop but still on track for their worst annual performance since 2000. The World Bank revised its 2024 China growth forecast slightly higher to 4.9%, while warning of persistent headwinds from weak household confidence and property sector challenges.
- Oil prices were steady with Brent at $72.76 and WTI at $69.61, set for modest weekly gains on China stimulus hopes. API data showed U.S. crude inventories fell 3.2 million barrels last week, with EIA report due later Friday. Sinopec sees China's oil consumption peaking in 2027.
- Gold traded flat around $2,633 amid thin year-end volumes but remained on track for a 0.3% weekly gain. The precious metal has surged about 28% in 2024, its strongest yearly performance since 2011. Silver held steady at $30.38 while platinum was unchanged at $954.50.
- Copper prices rose 0.5% to $9,008.50 after Chinese smelters lowered Q1 2025 processing charges by 28.6%, reflecting concentrate shortages. However, gains were capped by dollar strength. Iron ore fell below $100/ton for the first time in five weeks on China growth concerns.
- Bitcoin steadied around $96,000 after pulling back from recent highs, with traders taking profits ahead of a major options expiry. Over $14 billion in Bitcoin options and $3.8 billion in Ethereum options are set to expire Friday, potentially driving market volatility.
- BYD faced controversy in Brazil after labor authorities identified human trafficking involving Chinese workers at its factory construction site. The incident has sparked rare domestic criticism of BYD in China and raised concerns about the EV maker's rapid global expansion amid heightened scrutiny.
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.
