Markets Brace For Inflation Updates, Slower Rate Cuts

Markets continued to reconcile to the likelihood of a slower-than-expected monetary policy pivot by the Federal Reserve as well as other major central banks. The scheduled release of the consumer price inflation readings from the U.S. on Tuesday added to the anxiety.

Wall Street Futures point to mild gains. Major European benchmarks are trading mixed amidst words of caution on rate cuts by ECB speakers. Asian stocks finished trading on a positive note.

The Dollar Index edged up amidst data from the U.S. that revealed a tight labor market. Bond yields continued to harden amidst an overwhelming narrative against pre-mature rate cuts. Crude oil prices traded firm as hopes of a cease-fire between Israel and Hamas faded. Gold prices edged lower. Cryptocurrencies extended gains.

Here is a snapshot of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 38,741.70, up 0.04%
S&P 500 (US500) at 5,004.30, up 0.13%
Germany’s DAX at 16,973.67, up 0.06%
U.K.’s FTSE 100 at 7,605.19, up 0.13%
France’s CAC 40 at 7,662.63, down 0.04%
Euro Stoxx 50 at 4,714.55, up 0.08%
Japan’s Nikkei 225 at 36,897.42, up 0.18%
Australia’s S&P ASX 200 at 7,644.80, up 0.07%
China’s Shanghai Composite at 2,865.90, up 1.28% (February 8)
Hong Kong’s Hang Seng at 15,746.58, down 0.83% (February 8)

Currencies:

EUR/USD at 1.0770, down 0.06%
GBP/USD at 1.2605, down 0.09%
USD/JPY at 149.38, up 0.05%
AUD/USD at 0.6506, up 0.23%
USD/CAD at 1.3458, up 0.02%
Dollar Index at 104.23, up 0.06%

Ten-Year Govt Bond Yields:

U.S. at 4.174%, up 0.05%
Germany at 2.3605%, up 5.47%
France at 2.871%, up 5.44%
U.K. at 4.0960%, up 5.68%
Japan at 0.721%, up 0.00%

Commodities:

Brent Oil Futures (Apr) at $81.63, up 0.00%.
Crude Oil WTI Futures (Mar) at $76.36, up 0.18%.
Gold Futures (Apr) at $2,046.45, down 0.07%.

Cryptocurrencies:

Bitcoin at $46,589.22, up 4.01%
Ethereum at $2,463.77, up 1.64%
BNB at $323.12, up 2.17%
Solana at $105.14, up 3.40%
XRP at $0.5221, up 1.33%.

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