Market Summary
Yen Strengthens to Seven-Month High as BOJ Hike Bets Build: The yen extended Monday’s rally, strengthening by as much as 1% to 152.89 per dollar and reaching its strongest level since February. The move comes amid rising expectations of a Bank of Japan interest-rate increase next week. The yen has now gained more than 4% against the dollar this month, making it the best-performing G10 currency. Japan’s Finance Minister Satsuki Katayama said authorities would continue working to maintain orderly currency markets, while the recent rally appears to be gaining momentum following pressure from Japanese and US officials.
Oil Extends Gains as Hormuz Developments Remain in Focus: Brent crude rose by around 1.4% this morning to approximately $98.35 a barrel, extending Monday’s advance. Traders are watching for further details of an Iranian agreement with Oman aimed at managing shipping through the Strait of Hormuz, while strong Chinese buying has helped tighten the market. Ongoing uncertainty surrounding the key energy corridor continues to support a geopolitical risk premium in crude prices.
Asian Stocks Mostly Lower as KOSPI Pulls Back: Asian equities were mostly lower this morning, led by declines in Japan and Australia, while the KOSPI fell by around 0.20% following its recent strong gains. Nasdaq futures are up approximately 0.15%, while S&P 500 futures are down 0.20%, pointing to a cautious start for US equities. Investors remain focused on Friday’s US inflation report as the key catalyst for the Fed outlook this week.
Copper Hits Record High on Supply Concerns and Tariff Expectations: Copper extended its rally for a fourth consecutive session, reaching a fresh record high of $14,617 per tonne on the London Metal Exchange. Tight near-term supplies and expectations that the US could impose tariffs on imports of refined copper have provided further support to the industrial metal.
Canada’s Retaliatory Tariffs on US Goods Take Effect: Canada’s retaliatory tariffs, ranging from 15% to 50% on hundreds of US products, came into effect today. The latest measures add to trade tensions between the two countries, with President Trump threatening to block the sale of Bombardier jets in the US.
US Inflation and Corporate Earnings in Focus: Friday’s US inflation report is expected to be the biggest potential market catalyst this week as investors assess the outlook for Federal Reserve policy. Corporate earnings will also provide important signals for equity sectors, with Oracle and Adobe due to report on Thursday. Their results could offer fresh insight into AI infrastructure spending and the potential impact of AI technology on traditional software businesses.
Economic Calendar
- France Trade Balance
- South Africa GDP
- US Consumer Credit
Key Market Moves Today
- S&P 500 Futures: -0.20% (7,702.0)
- US 10-Year Yield: -0.60 bps (4.78%)
- Brent Crude: +1.39% ($98.35)
- Bitcoin: -0.51% ($78,820)
- Spot Gold: -0.02% ($4,403)
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