Asia Stocks Set To Fall At Open; Oil Trims Advance: Markets Wrap

(Bloomberg) — Asian equities look set to fall Tuesday following declines in European stocks and bonds as European Central Bank officials tamped down rapid rate cut expectations. (Bloomberg) — Asian equities look set to fall Tuesday following declines in European stocks and bonds as European Central Bank officials tamped down rapid rate cut expectations. Australian shares and futures for Hong Kong slipped, while those for Japanese equities rose.

US contracts were little changed after a Monday holiday. The region-wide Euro Stoxx 50 inched 0. 3% lower Monday, partly weighed down by a contraction in German gross domestic product in the fourth quarter, although Europe’s largest economy managed to avoid recession.

Elsewhere, oil prices retreated, even as tensions in the Red Sea endured. Houthi militants hit a US-owned commercial vessel with a ballistic missile on Monday, underscoring the risks facing one of the world’s most important trade routes. West Texas Intermediate, the US oil price, fell 0.

3%, while Brent, the international benchmark slipped 0. 2% Monday. “Despite the conflict leading to the suspension of certain Red Sea routes, global oil supplies have not been significantly impacted,” Saqib Iqbal, an analyst at Trading.

Biz, said in a note. “The focus shifts to key economic data releases from the US and China, providing valuable insights into potential demand. ” ECB Governing Council member Robert Holzmann indicated cuts this year were not assured given lingering inflation and geopolitical risks, in Monday comments.

The sentiments echo prior comments from ECB President Christine Lagarde in warning that it’s too early to talk about trimming borrowing costs. German bunds fell in a decline that highlights a chasm between market expectations or European Central Bank rate cuts and a less optimistic outlook among economists. The market is pricing in around six cuts, while economists polled by Bloomberg see four 25 basis point reductions as a more realistic scenario.

Australian and New Zealand yields crept higher in early Asian trading, mirroring the selling pressure in Europe. The dollar rose against major currencies with the New Zealand dollar and Norwegian krone the laggards among the G-10. In other commodities, gold rose 0.

4% to around $2,056 per ounce and Bitcoin edged 0. 5% higher to above $42,000 Monday. European natural gas futures tumbled to the lowest since August, underscoring the region’s success in bolstering supplies since the energy crisis in 2022.

In corporate news, Apple Inc. is planning to remove its blood-oxygen feature from its latest smartwatches to get around a US ban of the devices if an appeal of the decision fails. Rio Tinto Group, the world’s top iron ore exporter, reported production of the steelmaking material fell 2% in the fourth quarter.

US earnings reports due later Tuesday for the fourth quarter include Goldman Sachs Group Inc and Morgan Stanley. Investors will also be looking ahead to inflation readings in Germany and the UK, as well as a swath of political leaders and officials including Chinese Premier Li Qiang attending the annual WEF. A speech by Federal Reserve Governor Christopher Waller, after officials last week attempted to temper any expectation of a looming rate cut, will also be closely watched.

Norway’s $1. 5 trillion sovereign wealth fund is bracing for lackluster performance from markets in the years to come. “I think there is more underlying inflationary pressure,” Chief Executive Officer Nicolai Tangen said in an interview on Bloomberg Television at the World Economic Forum’s annual meeting in Davos, Switzerland.

“The international central banks will be very careful in cutting rates too quickly because they have been too slow in putting them up. ”Source: Bloomberg Some key events in markets this week: Japan PPI, Tuesday Germany CPI, ZEW survey expectations, Tuesday UK unemployment, Tuesday US Empire Manufacturing, Tuesday Goldman Sachs Group Inc. , Morgan Stanley to report earnings, Tuesday Federal Reserve Governor Christopher Waller speaks, Tuesday China GDP, property prices, retail sales and industrial production, Wednesday Eurozone CPI, Wednesday UK CPI, Wednesday US retail sales, industrial production, business inventories, Wednesday Federal Reserve issues Beige Book survey, Wednesday European Central Bank President Christine Lagarde speaks at Davos, Wednesday New York Fed President John Williams speaks, Wednesday Australia unemployment, Thursday Japan industrial production, Thursday European Central Bank publishes account of December policy meeting, Thursday US housing starts, initial jobless claims, Thursday Atlanta Fed President Raphael Bostic speaks, Thursday Japan CPI, Friday US existing home sales, University of Michigan consumer sentiment, Friday US Congress faces deadline to pass spending agreement before part of federal government shuts down, Friday San Francisco Fed President Mary Daly speaks, Friday Here are some of the main moves in markets: Stocks S&P 500 futures were little changed as of 8:11 a.

m. Tokyo time Nasdaq 100 futures were little changed Nikkei 225 futures rose 0. 4% Hang Seng futures fell 0.

5% Australia’s S&P/ASX 200 fell 0. 5% Currencies The Bloomberg Dollar Spot Index rose 0. 2% The euro was little changed at $1.

0949 The Japanese yen was little changed at 145. 76 per dollar The offshore yuan was little changed at 7. 1863 per dollar Cryptocurrencies Bitcoin fell 0.

3% to $42,542. 31 Ether fell 0. 3% to $2,513.

73 Bonds Australia’s 10-year yield advanced five basis points to 4. 13% Commodities West Texas Intermediate crude was little changed Spot gold was little changed This story was produced with the assistance of Bloomberg Automation. More stories like this are available on bloomberg.

com ©2024 Bloomberg L. P. .