Morning Wrap (19.11.2024)

Asian markets broadly higher with tech stocks leading gains, tracking overnight Wall Street strength. Nikkei rose 0.5%, KOSPI added 0.2%, while ASX 200 surged 1.1%. China's CSI 300 traded flat ahead of LPR decision.

US futures steady in Asian trading as markets await NVIDIA earnings. S&P 500 futures up 0.15%, while European futures indicate higher open with STOXX 50 futures rising 0.55%.

Dollar retreats from one-year highs as markets digest Trump policy expectations. Treasury yields ease with 10-year at 4.408%. Markets price 58.4% chance of December Fed rate cut.

RBA minutes show board remains cautious on inflation, emphasizing need for restrictive policy. Cash rate expected unchanged until mid-2025. Australian Dollar holds steady at $0.6504.

Japanese yen finds support at 154.47 per dollar after Finance Minister warns on excessive moves. BOJ Governor Ueda maintains dovish stance despite weak economic data.

Bitcoin trades at $91,713  after MicroStrategy announces record $4.6B purchase of 51,780 coins at average $88,627. Trump victory optimism cools as markets await policy details.

Oil edges higher with Brent at $73.45 and WTI at $69.31 after Norway's Johan Sverdrup field halts production. Kazakhstan's Tengiz field also reports 30% output reduction.

Gold extends recovery to $2,622 on dollar weakness and rising Russia-Ukraine tensions after US authorizes long-range missile strikes into Russian territory.

Trump's Treasury secretary search widens with Apollo CEO Marc Rowan and ex-Fed Governor Kevin Warsh emerging as new candidates after John Paulson exits race.

Goldman Sachs joins Morgan Stanley in forecasting S&P 500 at 6,500 by end-2025, sees 11% earnings growth and 2.5% GDP expansion. Warns of tariff and yield risks.

Beijing and Shanghai announce property tax breaks to boost housing market, including VAT exemptions for resales held over 2 years. Other major cities expected to follow.

IMF warns of Asian growth risks from "tit-for-tat" tariffs, particularly concerning Trump's proposed 60% levy on Chinese imports. Maintains Asia growth forecast at 4.6% for 2024.

Boeing to lay off 2,500 workers across US manufacturing hubs, part of broader 17,000 job cuts. Notices sent to workers in Washington, South Carolina, Oregon, and Missouri.

Key events ahead: Eurozone final October CPI, US housing data, Fed's Schmid speech, BOE Governor Bailey parliamentary testimony, ECB's Elderson on green finance.