Morning Wrap (26.01.2024)

• Indices in the Asia-Pacific region are experiencing a minor correction. The Japanese Nikkei 225 is down 1.35%, the Australian S&P ASX 200 loses 0.20%, and the Kospi gains 0.50%. Stock markets in China are returning to declines, recording a drop of 1.70-2.10%.

• In the first part of today's forex market session, there are no major changes. The session was calm, with most currency pairs limiting changes to a range of -0.20 to 0.10%.

• The EURUSD pair deepens yesterday's losses, losing 0.10% to a level of 1.0836.

• Intel's financial report highlights a mixed performance. In the fourth quarter, the company saw a revenue increase of 10% year-over-year, reaching $15.4 billion. However, for the full year, Intel's revenue declined by 14% compared to the previous year, totaling $54.2 billion. Earnings per share (EPS) in the fourth quarter stood at $0.54. The full-year EPS was significantly lower at $1.05. Looking ahead to the first quarter of 2024, Intel forecasts revenue between $12.2 billion and $13.2 billion. 

• Today, early in the day, the minutes from the last meeting of the Bank of Japan (BoJ) were published. The Bank of Japan's policymakers agreed to continue debating the timing of exiting ultra-loose monetary policy and the appropriate pace of interest rate hikes after its conclusion.

• Some members of the bank stated that the BOJ could maintain yield curve control as a loose framework, even after short-term interest rates return from negative territory.

• Many members stated that positive wage inflation pressure must be confirmed to consider ending negative interest rates, YCC.

• The head of Japan's largest labor union, Rengo, Tomoko Yoshino, confirms the desire for further wage and price increases.

• Venezuelan President Nicolas Maduro reached an agreement with the political opposition regarding elections to be held later this year. This agreement led the United States to temporarily ease oil sanctions imposed on Venezuela.

• North Korean leader Kim Jong Un may undertake some form of military aggression against South Korea in the coming months, following a shift to openly hostile policy, according to anonymous sources from a U.S. office.

• The cryptocurrency market is noting slight increases, with Bitcoin gaining 0.45% and returning above the $40,000 level, while Ethereum rises 0.20% to $2,220. The market continues to be under immense selling pressure from Grayscale, which continues to sell off assets of its ETF.

• The United States has made a public announcement that it will be selling over $130 million in bitcoins seized in money laundering related to Silk Road and drug trafficking crimes.

EURUSD is already losing over 0.10% in the first part of the day, and the rate is currently testing the SMA 200 average. Source: xStation 5