By Roy V
SINGAPORE (Reuters) – Global stocks opened the week strongly ahead of Nvidia’s (NASDAQ: No one is left the wiser regarding
Bank of Japan Governor Kazuo Ueda reiterated on Monday that the central bank would continue to raise interest rates if economic and price developments are in line with his forecasts, but did not specify Whether there may be an increase in December.
His speech was closely watched by investors for any indication of the BOJ’s next rate hike, which could be seen as a way to push back against the yen’s weakness.
The Japanese currency has fallen about 7 percent against the dollar since October and last week fell below $156 for the first time since July, prompting traders to wait for any intervention by Japanese authorities. Alert has been kept.
It was last down 0.3% at 154.72 per dollar, with Ueda paring some of its losses.
On the eve of a BOJ hike next month, IG market analyst Tony Sycamore said it would “depend on where the dollar/yen is to a degree”.
“If the dollar/yen is around 160, I think that will increase the chances of a rate hike. But I think he’s probably not unhappy with the dollar/yen sitting around 150, 152. Next year. up to
“It’s coming, it’s just a matter of time when… the Japanese economy is doing well.”
Despite a weaker yen, shares of healthcare companies fell 0.76 percent, led by losses.
MSCI’s broadest index of Asia-Pacific shares outside Japan, meanwhile, rose 0.7%.
Similarly, Nasdaq futures rose 0.6 percent, while the U.S. gained 0.25 percent.
The highlight for investors this week will be Nvidia’s third-quarter results on Wednesday, where analysts expect the artificial intelligence chip leader to post revenue growth.
Nvidia shares are up nearly 200% this year, with its heavy weighting partly responsible for the index’s record highs this year.
But its blistering multi-year run has also raised the bar for better earnings performance, and a slip could fuel fears that the market’s AI hopes have outpaced reality.
Elsewhere, Chinese stocks opened higher on Monday. The blue-chip index was last up 1.22 percent, compared with gains of 1.34 percent.
Hong Kong rose 1.5 percent.
Trump and rates
U.S. Treasury yields were near multi-month highs on Monday, boosted by less aggressive Federal Reserve rate cut conditions. [US/]
The benchmark 10-year yield was steady at 4.4315%, while the two-year yield was last seen at 4.2990%.
Futures mean the Fed has a 60% chance of easing by a quarter point in December and cutting rates by just 77 basis points by the end of 2025, down from more than 100 a few weeks ago.
It comes in the wake of comments by Chair Jerome Powell last week indicating that borrowing costs may remain high for a long time, and on the idea that US President-elect Donald Trump’s tariffs, immigration cuts And debt-driven tax cut policies will push up inflation. Limiting the scope for further policy relaxation.
“With changes in immigration policy, tariff policy, and monetary policy, Fed officials are nevertheless aware of the inflationary effects of these policies, and the need to keep the real policy interest rate otherwise. will move more lightly, as a result, said Thierry Wiseman, global FX and rates strategist at Macquarie.
At least seven Fed officials are scheduled to speak this week and traders believe they will remain cautious about aggressive cuts.
Changes in the outlook for U.S. rates and inflation have in turn lifted the dollar, which has pushed U.S. Treasury yields to fresh peaks as well.
Against a basket of currencies, the greenback hovered near a one-year high of 106.66.
Sterling last bought $1.2640, close to last week’s six-month low, while the euro rose 0.03% to $1.0543.
A group of European central bankers are also speaking this week and may sound more dire given recent soft economic data and the threat of Trump’s proposed tariffs affecting EU trade.
Among commodities, oil prices steadied on Monday. Futures rose 0.18% to $71.17 a barrel, while futures were little changed at $67.05 a barrel. [O/R]
It jumped 1.24% to $2,593.02 an ounce, recovering from its sharp decline last week. [GOL/]