FinancialMarkets 8 Things You Need To Know On FInancial Markets
Good Day, Some Fed officials eye broadening disinflation, the EU may penalize Chinese firms over Russia, Traders are yanking cash out of inflation -linked bonds. Bitcoin jumps to $50,000.
Sanctions Tankers
A chunk of the vast fleet of tankers that
Russia uses to deliver its crude oil is
grinding to a halt under the weight of US
sanctions. About half of the 50 tankers
that the US Treasury began sanctioning
on Oct. 10 have failed to load cargoes
since they were listed, according to a tally
by Bloomberg.
Inflation in Focus
The US’s CPI report due later Tuesday is expected to show the first reading below 3% for year-over-year
headline inflation since March 2021, supporting the disinflation narrative that has boosted stocks in recent months. Still, a decline in inflation may not be enough for some Fed officials, who want slowing to
broaden more meaningfully to housing and services before giving the green light to interest-rate cuts.
Citi also warned that rate hikes could follow a very brief easing cycle.
EU Trade Sanctions
The European Union has proposed new trade restrictions on about two dozen firms, including three
based in China, accused of supporting Russia’s war efforts in Ukraine. If adopted, it would be the first
time the bloc has imposed restrictions on companies in mainland China since the invasion. The list also
includes companies in Hong Kong, Serbia, India and Turkey.
Bitcoin at $50,000
Sustained appetite for risk assets propelled Bitcoin to $50,000 for the first time in more than two years,
tripling its value since the start of 2023, though it remains below its all-time high of almost $69,000. The
milestone comes one month after the historic debut of Bitcoin spot funds. The 10 new ETFs have raked
in about $2.8 billion in total net inflows, data compiled by Bloomberg Intelligence show. Even so, some
are still reeling from the wealth burned by collapsed exchanges, bankrupt lending programs and pumpand-dump altcoins. And hedge funds considering crypto investment strategies must now, confidentially,
share more information to US regulators.
Oil Market Yesterday
Oil prices rose slightly on Tuesday on fears Middle
East tensions could disrupt supply, but uncertainty
about the pace of potential U.S. interest rate cuts
and the ensuing impact on fuel demand capped
gains.
Saudi state oil company Aramco has started trading
a U.S. crude oil grade that underpins the global
Brent benchmark in a process run by oil-index publisher S&P Global Commodity Insights, the publisher
said on Monday.
U.S. oil output from top shale-producing regions will
rise in March to its highest in four months, the U.S.
Energy Information Administration (EIA) said on
Monday in its monthly Drilling Productivity Report.
Market participants awaited industry data on U.S.
crude inventories due later on Tuesday. Four analysts polled by Reuters estimated on average that
crude inventories rose by about 2.6 million barrels
in the week to Feb. 9.
OPEC and its allies including Russia, known as
OPEC+, will decide in March whether to extend voluntary oil production cuts in place for the first quarter.
MACRO Economics
The dollar flirted with the psychological threshold of
150 yen on Tuesday and held broadly steady ahead
of a key reading on U.S. inflation due later in the
day, while bitcoin hovered around the $50,000 mark
for a second day running.
U.S. Treasury yields slipped on Monday, with the
benchmark 10-year Treasury note pausing after
three straight sessions of gains ahead of a key reading on inflation.
Euro zone bond yields fell on Monday after rising
sharply last week, with dovish comments from a
European Central Bank (ECB) official helping sooth
the market.
Gold prices were little changed on Tuesday, as investors held back from making big bets ahead of a
U.S. inflation report that could give fresh perspective on the timing of the Federal Reserve's first rate
cut.
Key Market Data Today / Tomorrow
All times are Eastern Time (EST). We focus on U.S economic data mainly, as the U.S data drives
the markets mostly. Sometimes we look at Key China data as well as European Union data.
Thursday
Core CPI
08.30
API Weekly Crude Stock
16.30
Friday
Crude Oil Inventories
10.30
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