Morning Digest: Cautious Markets - Geopolitics, Oil in Focus

London: 25 January 2024 (TraderMade): The global market landscape has been cautious today, characterized by limited currency swings and mixed equity performances. Despite geopolitical jitters, the energy sector managed to carve out a path of modest gains, reflecting the ongoing tug-of-war between risk aversion and concerns over potential supply disruptions.

Market Snapshot: A Sideways Dance with Hints of Optimism

• Currencies: Greenback holds steady; NOK & CAD held their ground, while JPY & CHF dip slightly as risk appetite remains muted.
• Asian Equities: Hang Seng soars 0.55%, Nikkei edges up 0.17% on cautious optimism.
• European Equities: Indices exhibit a mixed picture - DAX flat, CAC & FTSE echo the trend.
• Equity Futures: US markets hint at a slightly positive opening - S&P 500 futures inch up 0.02%.
• Energy: Oil defies market inertia, WTI & Brent crude climb on supply disruption concerns.

Currencies

In a day lacking significant direction, the US Dollar found relative stability against its G10 counterparts. The Norwegian Krone and Canadian Dollar emerged as the day's marginal winners, clinging to flat performances against the greenback.

Conversely, the Japanese Yen and Swiss Franc relinquished modest ground, falling -0.19% and -0.18%, respectively, reflecting muted risk appetite in the face of ongoing geopolitical tensions.

Asian Equities

Buoyed by cautious optimism, Asian markets closed on a positive note. The Hong Kong Hang Seng Index (HSI) scaled 0.55% higher to finish at 16146.0, while the Japanese Nikkei 225 Index (N225) notched a modest 0.17% gain to conclude at 36272.0.

European Markets

European indices painted a mixed picture, reflecting investor hesitancy in the uncertain environment. The German DAX 30 Index (DAX) remained unchanged, while the French CAC 40 Index (CAC) and British FTSE 100 Index (FTSE) echoed flat performances.

US Markets

US equity futures hinted at a potential soft opening, with the S&P 500 futures (SPX) showing a minuscule 0.02% uptick to settle at 4872.9502.

Energy

Oil prices defied the broader market inertia, drawing support from lingering concerns about potential supply disruptions. West Texas Intermediate (WTI) crude futures (CL) surged 0.24% to conclude at 75.543, while Brent crude futures (LCO) followed suit with a 0.17% gain to close at 80.06.