Markets Overview
- ASX SPI 200 futures little changed at 6,918.00
- Dow Average little changed at 34,288.04
- Aussie down 0.4% to 0.7121 per US$
- U.S. 10-year yield rose 8.2bps to 1.8512%
- Australia 3-year bond yield little changed at 1.40%
- Australia 10-year bond yield little changed at 1.95%
- Gold spot down 1.7% to $1,815.86
- Brent futures up 1.5% to $89.52/bbl
Economic Events
- 10:30am: (AU) Dec. Westpac Leading Index MoM, prior 0.12%
- 10:30am: (AU) Australia to Sell A$1 Billion 105-Day Bills
- 10:30am: (AU) Australia to Sell A$1 Billion 84-Day Bills
- 11:30am: (AU) 4Q Import Price Index QoQ, est. 1.4%, prior 5.4%
- 11:30am: (AU) 4Q Export Price Index QoQ, est. -2.5%, prior 6.2%
Stock gains fizzled out and bond yields spiked after Jerome Powell signaled the Federal Reserve will steadily unwind its pandemic-era stimulus as it fights elevated inflation.
The S&P 500 posted a back-to-back drop after rallying more than 2% earlier in the day. Meantime, the dollar climbed to a one-month high and 10-year Treasury yields approached 1.9%.
Powell said he backs a March liftoff and won’t rule out a hike every meeting, while noting he’s inclined to boost his forecast for inflation by a “few tenths.” In its statement, the Fed signaled its first rate hike since 2018 will happen “soon,” while saying it expects a balance-sheet reduction to start afterward.
Other News
As millions of Hong Kongers prepare to hand out packets stuffed with cash to mark the lunar new year, the hottest envelopes are coming from an unlikely source: global investment banks.
The red packets, often embossed with gold or signs from the Chinese zodiac, are in huge demand on a vibrant secondary market even though banks give them away for free. This year’s design from UBS Group AG is commanding the highest price, selling for more than HK$10 ($1.30) per envelope on Facebook Marketplace and Carousell Pte. That’s more than 50% above second-ranked Credit Suisse Group AG and almost triple the price being paid for those from local rival HSBC Holdings Plc.
As millions of Hong Kongers prepare to hand out packets stuffed with cash to mark the lunar new year, the hottest envelopes are coming from an unlikely source: global investment banks.
The red packets, often embossed with gold or signs from the Chinese zodiac, are in huge demand on a vibrant secondary market even though banks give them away for free. This year’s design from UBS Group AG is commanding the highest price, selling for more than HK$10 ($1.30) per envelope on Facebook Marketplace and Carousell Pte. That’s more than 50% above second-ranked Credit Suisse Group AG and almost triple the price being paid for those from local rival HSBC Holdings Plc.
