Asian equities had a strong session overnight, with the Hang Seng rising 1.6% and the Nikkei gaining 1.21%. Markets are eagerly awaiting details from China’s two-day Central Economic Work Conference, where policies to bolster economic activity and growth for next year are expected. The region also benefited from positive Aussie data, which showed 35k jobs added to the economy, surpassing expectations, and an unexpected drop in unemployment.
The focus today shifts to the ECB and SNB. The European Central Bank is expected to cut interest rates for the fourth time this year as inflation nears 2%, aiming to support the region’s struggling economy. The SNB is also widely anticipated to cut rates by 25bps, although a 50bps cut remains a possibility. With 35bps already priced into the swap curve, the consensus leans towards a 25bps reduction. We’ll find out at 08:30.
Market-wise:
- The yield on 10-year Treasuries advanced to 4.28%, dragging USDJPY to 152.40.
- West Texas Intermediate crude opened above the psychological $70 mark at $70.45 a barrel.
- Bitcoin fell 1.1% to $100,518.98, while Ether rose 2.2% to $3,916.02.
- Aussie bonds were the biggest movers, with the 10-year yield advancing eight basis points to 4.26%.
- Spot gold declined 0.3% to $2,711.39 an ounce.
