- Asia-Pacific markets drift lower as geopolitical fears escalate in Ukraine, China reports record covid infections.
- PBOC’s status-quo, holiday in Japan defend bulls amid sluggish start to the key week.
- Multiple diplomatic meetings, central bank comments and PMIs to offer active sessions ahead.
Given the escalation in the Russia-Ukraine crisis joining geopolitical risks from Saudi Arabia and COVID-19 fears from China, risk appetite remains sour during Monday’s Asian session. It should be noted, however, that an off in Japan and no monetary policy change by the People’s Bank of China (PBOC) restricts the market moves of late.
Adding to the trading barrier is the cautious sentiment ahead of US President Joe Biden’s call with the leaders of Europe and the UK, as well as comments from the European Central Bank (ECB) President Christine Lagarde and Fed Chairman Jerome Powell.
While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan drops 0.30%. It’s worth noting that stocks in China remain mildly offered as the dragon nation prints record daily coronavirus infections and Evergrande suspends trading in Hong Kong.
Hong Kong’s Hang Seng and India’s BSE Sensex track China while flashing nearly 0.30% intraday loss while Australia’s ASX 200 remain indecisive as Australian Prime Minister Morris Scott hints at budget measures to battle fuel prices. Further, New Zealand’s NZX 50 rise 0.30% as a record trade deficit on YoY hints at RBNZ’s slower normalization, as well as chatters over removing virus-led activity measures.
It should be noted that firmer oil prices also weigh on the Asia-Pacific shares but cautious sentiment ahead of the day’s key events restrict the moves.
On a broader front, the S&P 500 Futures drops 0.28% intraday whereas the US Dollar Index (DXY) pare recent losses while the gold print mild gains at the latest.
Moving on, speech from European Central Bank (ECB) President Christine Lagarde and Fed Chairman Jerome Powell, as well as US President Joe Biden’s cal with the leaders of France, Germany, Italy and the UK will be important for the markets to watch.
Read: S&P 500 Futures, US T-bond yields seesaw as Ukraine-Russia fears grow over Mariupol
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0400 in quiet trading
EUR/USD trades in positive territory above 1.0400 in the American session on Friday. The absence of fundamental drivers and thin trading conditions on the holiday-shortened week make it difficult for the pair to gather directional momentum.
GBP/USD recovers above 1.2550 following earlier decline
GBP/USD regains its traction and trades above 1.2550 after declining toward 1.2500 earlier in the day. Nevertheless, the cautious market mood limits the pair's upside as trading volumes remain low following the Christmas break.
Gold declines below $2,620, erases weekly gains
Gold edges lower in the second half of the day and trades below $2,620, looking to end the week marginally lower. Although the cautious market mood helps XAU/USD hold its ground, growing expectations for a less-dovish Fed policy outlook caps the pair's upside.
Bitcoin misses Santa rally even as on-chain metrics show signs of price recovery
Bitcoin (BTC) price hovers around $97,000 on Friday, erasing most of the gains from earlier this week, as the largest cryptocurrency missed the so-called Santa Claus rally, the increase in prices prior to and immediately following Christmas Day.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.