Moving markets today: Asian stocks climb, Oracle surges 14%, bitcoin breaks $72,000; UK employment, U.S. inflation data in spotlight
US stocks began the week cautiously ahead of key consumer inflation data that could impact Federal Reserve decisions on interest rates. Asian markets saw mixed performance, with Japanese shares declining while the yen strengthened amid speculation about the Bank of Japan’s monetary policy. Oracle’s stock surged over 14% on surpassing profit estimates, and Bitcoin hit a record high above $72,000. Investors awaited Tuesday’s UK wage and employment reports, along with the US consumer price index data later in the day. Here are five key takeaways for your day.
Bitcoin’s meteoric rise: hits record high above $72,000
Bitcoin achieved a new all-time high exceeding $72,000, demonstrating its relentless upward trajectory. During the early Asia session, Bitcoin traded 0.2% higher at $72,300 after reaching a peak of $72,901.94. This surge in the value of the leading cryptocurrency has been fuelled by significant investments in new spot bitcoin exchange-traded funds and optimism surrounding potential interest rate cuts by the Federal Reserve.
Oracle surges over 14% as quarterly profit beats estimates
Oracle shares surged over 14% after the company announced a collaboration with Nvidia and beat quarterly profit estimates. The rise, fuelled by demand for generative AI, boosted Oracle’s market value by over $40 billion.
BoE’s Mann stresses significant effort needed to achieve 2% inflation target
During an event organized by hedge fund Citadel, consultancy CEPR, and the International Centre for Monetary and Banking Studies, Catherine Mann, a policymaker at the Bank of England, remarked on Monday that Britain still has a significant journey ahead to align inflation pressures with the central bank’s 2% target. Mann highlighted the considerable gap that exists in both services and goods inflation and emphasized that the historical relationship between services and goods inflation, consistent with a 2% headline rate, remains distant.
Key events to keep an eye on this week
This week’s economic schedule is packed with significant updates. We anticipate the latest gross domestic product (GDP) reports from the UK, alongside January’s job figures. Furthermore, inflation data from the US, India, and various European countries will be disclosed. Both OPEC and IEA are set to release their monthly reports on the oil industry. Keep an eye on the Financial Policy Committee’s quarterly meeting, which includes prominent figures like Bank of England governor Andrew Bailey, scheduled for Tuesday.
On Tuesday, analysts project a modest slowdown in core US consumer price inflation for February, estimating a decrease from 3.9% to 3.7%. The headline inflation rate is anticipated to maintain its stability at 3.1%. Meanwhile, in the UK, investors are shifting their attention to Tuesday’s data release, with a keen interest in the pace of average earnings growth. Projections suggest that the rate will remain robust at 6.2% , excluding bonuses, for the three months ending in January, holding steady from the figures observed in December.
Asian stocks soar as U.S. inflation data looms
On Monday, the S&P 500, a renowned stock market index, closed with a slight 0.1% dip, while the Nasdaq Composite, famous for its tech-oriented stocks, saw a 0.4% decline. The short-term Treasury yield, which mirrors market expectations regarding interest rates, went up by 0.05 percentage points to 4.53%, undoing the decrease noted last week. In Asia, Chinese stocks, notably in Hong Kong’s Hang Seng Index, surged by 1.04%, driven by the strength of technology-related shares, whereas the prominent CSI300 index also climbed by 0.13%. However, Japan’s Nikkei 225 index extended its downward trend, dropping by 0.80%.
The yield on 10-year Treasury notes remained stable at 4.0982%, and the dollar index, which gauges the value of the U.S. dollar against six major currencies, showed minimal change at 102.81, following its dip to 102.33 last week. Spot gold traded at $2,180 per ounce, slightly below its peak of $2,194.99 recorded last week. U.S. crude oil prices rose by 0.15% to $78.05 per barrel, while Brent crude stood at $82.38, marking a 0.21% increase for the day.