Morning Wrap (02.04.2024)

Indices from Asia and the Pacific are noting their second consecutive growth session in the new quarter. The biggest gains are in Chinese indexes, recording rises of 2.30-2.50%.

The Korean Kospi and the Japanese Nikkei are both up by 0.10%, while the Australian S&P/ASX 200 is down by 0.20%.

Stocks in China, namely HSCI and HSI, are noting very dynamic growth and are testing key support of the downward trend that has been ongoing for several years.

Indexes on Wall Street closed slightly lower yesterday, but still at record levels. Today, the US500 contracts are down by 0.12%, and US100 are quoted lower by 0.18%.

Futures contracts for European indexes indicate a lower opening for the cash session in Europe, suggesting slight declines of around 0.05-0.10%.

In the forex market, we do not observe major changes in the first part of the day, and most forex rates fluctuate between +-0.20%. However, the USD is already relatively strong against other currencies, and the USDIDX index is gaining 0.11%. In addition to the US dollar, the Australian dollar (AUD) is also strong.

The United States informed Iran that it had "no part" nor deeper knowledge about the Israeli attack on a diplomatic facility in Syria, in which a high-ranking Iranian general was killed.

Japanese Prime Minister Fumio Kishida expressed great concern about the deteriorating situation in Palestine due to the ongoing fighting between Israel and the radical Islamic group Hamas. Kishida's speech took place during an "Iftar," a dinner during the fasting month of Ramadan, which he hosted for ambassadors from Islamic countries in Japan on Monday.

Core inflation in South Korea remained above 3% for two consecutive months after rebounding to 3.1% in February. The core CPI index in South Korea in March recorded the slowest year-on-year growth since December 2021.

• CPI inflation y/y 3.1% (forecast 3%, previously 3.10%)
• Actual CPI MoM 0.1% (Forecast 0.1%, previously 0.50%)

In the cryptocurrency market, we observe a strong correction after an attempt to break through $71,000 for Bitcoin during the extended holiday weekend. Today, BTC is down by as much as 4.60% to a level of $66,400. Altcoins and Ethereum are also losing similarly.