Market Outlook

Inflation Trends Highlight Persistent Challenges December’s US inflation report delivered mixed signals for policymakers and markets alike. The core Consumer Price Index (CPI) eased to 3.2% year-over-year, while the headline CPI climbed to 2.9%, surpassing the Federal Reserve’s 2.0% target. This divergence underscores the complexity of managing inflation pressures, even as core prices exhibit signs […]

Improved Risk Appetite Following US Inflation Data Investor sentiment across global markets brightened as US inflation data pointed to potential progress toward the Federal Reserve’s long-term target. While Fed policymakers remain cautious, emphasizing the need for further evidence of cooling inflation before contemplating additional rate cuts, the data has sparked optimism about a sooner-than-expected policy

Dollar Weakens as Gradual Tariff Plan Sparks Optimism The US dollar edged lower following reports that President-elect Donald Trump’s economic team is considering a phased approach to implementing tariffs. This measured strategy contrasts sharply with earlier threats of levies as high as 60% on Chinese goods, which have cast a long shadow over Asian markets.

Global Markets Brace for Nonfarm Payrolls Amid Fed Policy Clarity As global financial markets enter 2025, volatility remains elevated, with Treasury yields climbing steadily as investors reassess the Federal Reserve’s rate outlook. Several Fed officials emphasized Thursday that rates are likely to remain at elevated levels for an extended period, with further cuts contingent on

US President-elect Donald Trump’s tariff-centric policies are inherently inflationary, raising concerns that the current environment of mid-level interest rates could persist for an extended period. Despite efforts by the Federal Reserve to curb inflation, the stubbornly high price levels suggest that the path to lower rates may be slower than previously anticipated. Treasuries Hold Steady

The US dollar extended its advance, with the Dollar Index climbing as much as 0.5%, while Treasuries softened as traders positioned themselves ahead of key US economic data. This data is expected to offer fresh insights into the Federal Reserve’s monetary policy trajectory. Hawkish remarks from the Bank of Japan added another layer of complexity,

The Federal Reserve’s preferred inflation metric has shown an uptick, bolstering the argument for a cautious approach to future rate cuts. Policymakers appear increasingly inclined to maintain a measured pace, balancing the need to support growth while keeping inflation risks in check. Market participants are also closely analyzing the potential economic impact of policy decisions

Traders are poised for a flurry of US economic data expected later today, which could shed light on the Federal Reserve’s potential trajectory for monetary policy. Key inflation and growth figures may offer insights into whether the central bank leans toward further rate cuts or maintains its cautious stance. In New Zealand, the central bank

The US dollar extended its rally while equities took a hit after President-elect Donald Trump announced plans to impose additional tariffs on China, Mexico, and Canada. The renewed focus on his “America First” trade policies has reignited concerns about global economic stability and trade relations. Trump’s approach, reminiscent of his 2016-2020 presidency, follows a familiar

This week, Asian markets are set to zero in on Japan’s inflation data, with Bank of Japan Governor Kazuo Ueda signaling that the December policy meeting remains pivotal. Expectations for any adjustment to the central bank’s ultra-loose monetary stance will hinge on the inflation trajectory, keeping traders on edge. Across the Tasman, the Reserve Bank