Global Markets:
- Asian Stock Markets : Nikkei up 2.53%, Shanghai Composite up 1.07%, Hang Seng down 0.14% ASX down 0.06%
- Commodities : Gold at $4,417.45 (+2.03%), Silver at $75.028 (+5.64%), Brent Oil at $60.54 (-0.35%), WTI Oil at $57.45 (-0.45%)
- Rates : US 10-year yield at 4.191, UK 10-year yield at 4.5380, Germany 10-year yield at 2.8990
News & Data:
- (USD) Final Manufacturing PMI 51.8 to 51.8 expected
Markets Update:
Asian stocks traded mostly higher on Monday, with investors choosing to look past U.S. military action in Venezuela over the weekend and instead turning their attention to upcoming economic data releases and corporate earnings. Market participants appeared to assess that the geopolitical developments would have limited immediate economic fallout.
The U.S. dollar edged slightly higher, extending its winning streak to a fifth consecutive session after U.S. forces carried out operations in Venezuela and detained President Nicolas Maduro. The U.S. Secretary of State said Washington would continue to apply “multiple levers of leverage” should Venezuelan leaders fail to take what it considers appropriate steps. Analysts noted that the situation is unlikely to have significant near-term implications for the global economy.
Oil prices were volatile, swinging between gains and losses after OPEC+ opted to keep production levels unchanged for the first quarter of the year. Meanwhile, U.S. 10-year Treasury yields inched higher, while gold jumped nearly 1.7 percent as investors sought safe-haven assets amid elevated geopolitical risks.
In Asia, China’s Shanghai Composite rose 0.7 percent despite fresh indications of slowing business momentum. A private survey showed China’s services sector expanded at its slowest pace in six months in December. Hong Kong’s Hang Seng gained 0.2 percent, while Japan’s Nikkei surged 2.6 percent to a two-month high after data showed manufacturing activity stabilised.
South Korea’s Kospi jumped 2.4 percent to a record high, supported by renewed diplomatic engagement with China. Australia’s S&P/ASX 200 rose 0.2 percent, and New Zealand’s S&P/NZX-50 added 0.3 percent. U.S. markets ended mostly higher on Friday, led by gains in the Dow and S&P 500.
Upcoming Events:
- 03:00 PM GMT – USD ISM Manufacturing PMI
