From Marc to Market:
Overview: The US dollar is trading lower against most currencies, but the intraday momentum indicators are stretched, suggesting the selling pressure may not be sustained through in North America today. December US personal income and consumption data was contained in yesterday's Q4 23 GDP data, but the market want to see the monthly print, which is expected to see the core measure ease with the headline rate flat. Tokyo's January CPI was much softer than expected, falling to 1.6% at the headline and core rates. Still, the market loos for the BOJ to exit its negative interest rate policy in April.
Chinese stocks, which rallied almost 4% in the past three sessions, helped by formal and informal official action, eased today with the CSI 300 slipping around 0.3%. Disappointing Intel earnings yesterday may have contributed to the retreat in Asia Pacific indices today (India and Australia markets were closed. The MSCI regional index fell for the first time in seven sessions. Europe's Stoxx 600, less tech-sensitive, is up for the third consecutive session. Its weekly gain (~2.9%), if sustained would be the largest since early November. Meanwhile, the US S&P and NASDAQ are poised to snap six-day advances today unless a strong recovery is seen. The weaker-than-expected Tokyo CPI saw the yield on the 10-year JGB pull back a few basis points to 0.70%. European benchmark 10-year yields are mostly 2-4 bp lower, while the 10-year Treasury yield is little chanced near 4.11%. Gold is in a narrow range between around $2018 and $2024. It is marginally lower on the week. With China warning against striking its ships in the Red Sea, crude oil is a little heavier after the March WTI contract reached $77.50 yesterday. Still, near $76.60, March WTI is up about 4.6% this week, the largest surge since last October....
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