Morning wrap (20.05.2024)

Asia-Pacific indices record a moderately upward session. Indexes from China gain the most, between 0.60-0.70%. Japan's Nikkei 225 index gains by 0.65% and Australia's S&P/ASX200 is trading 0.33% higher.

European index futures also point to a slightly higher opening of the cash session. The UK100 contracts are gaining around 0.10% and the German DAX index is up 0.20% to 18850 points. 

In the forex market, in the first part of the day, we can see the biggest movements on the Japanese yen, which is one of the weaker G10 currencies. On the other side, the Australian dollar AUD is among the strongest currencies.

Iranian President Ebrahim Raisi, the country's foreign minister and others were found dead at the scene of a helicopter crash on Monday after hours of searching in a foggy, mountainous region in the northwest of the country, state media reported. According to local media, President Raisi was heading to the city of Tabriz, in the north-western part of Iran.

At the time of publication, there is little change in the financial markets in relation to this fatal accident. There is currently no evidence of any assassination attempt or third party interference.

As expected, the People's Bank of China (PBOC) kept its benchmark interest rate (LPR) unchanged on Monday. The PBOC left the one-year LPR rate at 3.45%, while the five-year rate remained at 3.95%. Beijing continued to implement other stimulus measures to support the economy. 

Credit rating agency Fitch has affirmed Kazakhstan's long-term foreign currency default rating (IDR) at ‘BBB’ with a stable outlook. Key rating factors include the country's strong external and fiscal balance sheets, which have been resilient to shocks, and funding flexibility supported by accumulated savings from oil revenues. 

In a note issued over the weekend, Morgan Stanley expects oil demand to grow at a rate above the historical trend this year. The bank cites economic growth, population expansion, government policy and technological change as reasons for higher demand.

The cryptocurrency market is seeing gains after a slightly weaker two sessions over the weekend. Bitcoin is gaining around 2.00% today returning above USD 67,000.