Morning Wrap (15.10.2024)

The cash session in the Asia-Pacific region is trending upward after new highs were set on the SP500 during yesterday's session in the U.S. Indices such as Nikkei225, KOSPI, AUS200, and the MSCI Singapore Index are gaining. The exception is Chinese indices, which are experiencing a 1.50-1.70% decline. 

CFD contracts on the US500 ended yesterday’s session above 5900 points for the first time. Meanwhile, the SP500 cash index closed 0.77% higher at 5860 points. 

The gains in U.S. indices were driven by enthusiasm for semiconductor stocks, including NVIDIA (+2.4% to $138), ASML (+3.75%), and ARM (+6.84%).

Today, the strongest currencies are the U.S. dollar (USD) and the Japanese yen (JPY). The dollar continues to strengthen, with the USDIDX gaining 0.13% today, above 103 points. Meanwhile, the yen is slightly recovering from yesterday’s losses, with USDJPY down 0.11% to 149.6000.

Japan's seasonally adjusted industrial production index recorded a monthly decline of 3.3% in August. Compared to the same month in 2023, this figure fell by 4.9%. The report was in line with economists' expectations.

Minneapolis Federal Reserve (Fed) President Neel Kashkari said on Monday that monetary policy remains restrictive, adding that further moderate interest rate cuts may be appropriate. Kashkari is generally considered supportive of monetary easing.

OIL.WTI crude oil deepened discount, losing 1.20% to US$71 per barrel today. The decline is driven by Netanyahu's declaration that Israel would strike Iranian military targets rather than nuclear or oil targets suggesting a more limited counterattack to prevent a full-scale war.

In the cryptocurrency market, a slight correction is observed following yesterday’s strong gains. Yesterday, Bitcoin tested resistance at $66,000, but bulls were repeatedly pushed back from these levels. Today, Bitcoin is trading 1.25% lower at $65,200.

Kashkari from the Fed said yesterday that Bitcoin has existed for over a decade and still remains useless. Kashkari has been known for his negative stance on cryptocurrencies in his previous statements. On the other hand, he acknowledged that generative artificial intelligence appears to have real potential.