Morning Wrap (08.05.2024)

Asia-Pacific indices are having a down session. The biggest losses are observed in the Japanese Nikkei 225 index (-1.20%) and the Singapore SG20cash index (-1.10%). Indices from China are noted down by about 0.50%, and the Australian S&P/ASX200 is down by -0.10%.

Futures contracts on European indices also indicate a slightly negative opening for the cash session. Contracts on the DAX index and UK100 are down by approximately 0.05-0.15%.

In the forex market, movements in the first part of the day are relatively moderate. One of the stronger currencies is the dollar (USD), which has already gained about 0.20% in the first part of the day. On the other side, among the weakest currencies are JPY and AUD, losing about 0.1-0.2%. The USDJPY pair is up by 0.40% to 155.200.

Japanese Finance Minister Suzuki continues to decline comments on currency intervention. However, the Minister emphasizes that he is deeply concerned about the negative impact of the weak yen, and the Japanese government will closely monitor market movements.

Bank of Japan Governor Ueda spoke today in the Japanese parliament, emphasizing that monetary policy is not aimed at controlling exchange rates. Ueda stated that monetary policy aims to influence inflation, not the yen exchange rate. However, currency movements can have a significant impact on the economy and prices, thus the impact of currency volatility may be greater than in the past.

Morgan Stanley is moving its forecast for the first interest rate cut by the Fed to September. Previously, the bank predicted cuts in July.

Cryptocurrencies are slightly rebounding after a worse second part of yesterday, but prices still remain below yesterday's levels. Bitcoin is up 0.50% to 62600 USD. Ethereum is up 0.45% to 3020 USD and is fighting to stay above 3000 USD.