Lates News

On Wednesday, Asian stock markets are expected to reach new highs as the weakened retail sales data last night strengthened the reasons for the Fed to cut interest rates this year, pushing the prices of US Treasuries higher. Futures for Sydney and Hong Kong stock indices suggest further gains, while the Tokyo stock market is closed for a holiday. The currency market currently believes that the probability of three rate cuts by the Fed this year has slightly increased, with two rate cuts already fully priced in. The unexpected stall in US retail sales in December indicates a weakening in consumer momentum towards the end of last year, which is the driver for the economy. Traders are currently on high alert for the key US employment report to be released on Wednesday. Bret Kenwell of eToro believes that while the retail sales report is not a disaster, it is not a constructive signal either, especially considering the ongoing concerns in the labor market and continued volatility in multiple asset classes. The employment report will be crucial, as weak data could further shift sentiment towards risk aversion; however, strong data could alleviate some of those concerns.