Authorized and Regulated Entities: SARACEN MARKETS (PTY) LTD

Author name: Analyst

Bank of Japan Expected to Abandon Negative Rates Amid Strong Wage Deals 1

Bank of Japan Expected to Abandon Negative Rates Amid Strong Wage Deals

Anticipation is rife among Bank of Japan (BOJ) observers, with a staggering 90% of them predicting authorities will discard their negative-rate policy come Tuesday. The speculation gained traction following news of Japan’s largest union group securing the most robust wage agreements in over three decades. In response, the yen exhibited weakness against the dollar, while stock markets […]

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Fed Rate Cut Prospects Dim as PPI Signals Bottoming Out 3

Fed Rate Cut Prospects Dim as PPI Signals Bottoming Out

The Producer Price Index (PPI), often considered a leading indicator of inflation, appears to have hit a trough, dampening expectations for a Federal Reserve interest rate cut. Analysts anticipate the Fed to maintain its current interest rate levels at the March 19-20 meeting, marking the fifth consecutive gathering without a change in rates. Following recent

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Markets Await US Producer Price Data Amid Economic Uncertainty 5

Markets Await US Producer Price Data Amid Economic Uncertainty

Investors are closely monitoring the release of US producer price data today, seeking insights that could corroborate or challenge the robust Consumer Price Index (CPI) report earlier this week. This anticipation is contributing to a subdued level of volatility in today’s Asian session, particularly given the absence of significant economic data. As market participants await

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Federal Reserve Eyes Steady Rates Amid Economic Indicators 7

Federal Reserve Eyes Steady Rates Amid Economic Indicators

As the Federal Reserve prepares for its upcoming meeting on March 19-20, market analysts widely anticipate that interest rates will remain unchanged for the fifth consecutive session. However, investors are eagerly awaiting insights from the Federal Open Market Committee’s (FOMC) quarterly forecasts on rates, particularly in light of recent developments in employment and inflation data.

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US Stocks Hit Records Despite Disinflationary Concerns 9

US Stocks Hit Records Despite Disinflationary Concerns

Following a surge in U.S. stocks to record highs propelled by in-line inflation data, attention turned to the release of the U.S. Personal Consumption Expenditures (PCE) report. Despite expectations, the report failed to alleviate broader concerns regarding disinflationary trends, reinforcing forecasts for potential rate cuts. As anticipation builds for potential rate adjustments in the coming year, discussions

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US Stocks Dip Despite Strong Consumer Spending, Fed Caution 11

US Stocks Dip Despite Strong Consumer Spending, Fed Caution

The decline in U.S. stocks on Wednesday followed robust consumer spending data, despite a minor revision to fourth-quarter 2023 U.S. gross domestic product (GDP) growth. The report, released ahead of the Federal Reserve’s preferred inflation gauge due Thursday, echoed the cautious sentiments expressed by Fed officials in recent weeks. New York Fed President John Williams emphasized the central

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New Zealand Dollar Slides as Reserve Bank Dials Down Inflation Rhetoric 13

New Zealand Dollar Slides as Reserve Bank Dials Down Inflation Rhetoric

The New Zealand dollar experienced a notable decline, slipping 1% alongside government bond yields following the Reserve Bank of New Zealand’s (RBNZ) less hawkish commentary on inflation. The central bank’s remarks highlighted a decrease in most measures of price expectations, leading to a subdued market response. As anticipated by economists, the RBNZ maintained its policy rates unchanged.

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Mixed Asian Markets Await Fed Signals Amid Economic Data Deluge 15

Mixed Asian Markets Await Fed Signals Amid Economic Data Deluge

During the Asian trading session, markets exhibited a mixed sentiment as investors adopted a cautious stance ahead of a flurry of economic data releases and speeches from Federal Reserve officials in the coming days. These events are poised to play a crucial role in shaping the outlook for interest rates. Treasury markets saw minimal movement during Asian

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Commodities Slip, Markets Brace for Data Deluge and Fed Signals 17

Commodities Slip, Markets Brace for Data Deluge and Fed Signals

Brent crude oil prices edged lower towards $81 a barrel following a more than 2% decline last week, while its U.S. counterpart West Texas Intermediate hovered above $76. Concurrently, gold saw slight losses, and iron ore dropped to its lowest level since October, echoing last week’s nearly 9% slump. Hopes for a resurgence in Chinese steel demand post-Lunar New Year

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Traders Unfazed by Hawkish Fed Remarks; Treasury Yields Steady 19

Traders Unfazed by Hawkish Fed Remarks; Treasury Yields Steady

Market participants remained relatively unperturbed by hawkish commentary from the Federal Reserve, with Treasury 10-year yields exhibiting minimal change at 4.32% on Thursday. Cash Treasury trading in Asia was halted on Friday due to the observance of a Japanese holiday. The Federal Reserve’s increasing confidence in ongoing and sustainable disinflation may eventually prompt a shift in the

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