Morning Digest: Cautious Trading Across Markets

London: 26 February 2024 (TraderMade): The morning session sees cautious trading across markets, with currency movements reflecting varying risk appetites and equities exhibiting mixed performance. Energy prices, however, experience modest declines.

Key takeaways

• JPY and CHF gain ground against the USD, reflecting safe-haven demand.
• NZD and AUD experience declines as risk appetite remains cautious.
• Asian markets closed lower, with investors adopting a cautious approach.
• European markets open mixed, while US equity futures point towards a slightly negative start.
• Oil prices face downward pressure amidst worries about global demand.

Forex

Yen and Franc Gain Traction

The G10 FX market witnessed a modest tilt towards safe-haven currencies today. The Japanese Yen (JPY) appreciated 0.09%, and the Swiss Franc (CHF) gained 0.02% against the US Dollar - to emerge as the top gainer.

The uptrend could be attributed to heightened geopolitical concerns or investors seeking defensive positioning.

Kiwi and Aussie Slip

Meanwhile, risk-sensitive currencies like the New Zealand Dollar (NZD) and the Australian Dollar (AUD) faced selling pressure. NZD slipped by 0.44% against the USD, while AUD depreciated by 0.12%.

Forex Daily Pivot Points

Equities: Mixed Start Across the Globe

Asia Opens Soft

Asian markets opened softer today. The Hang Seng index in Hong Kong closed down 0.31% at 16666.0, while the Nikkei 225 index in Japan ended the session lower by 0.53% at 39240.0.

Europe Trades Flat

European markets, however, needed a clear direction at the time of writing. The DAX 30 in Germany (GER30 - Currently at 17420.102), the CAC 40 in France (FRA40 - Currently at 7956.3), and the FTSE 100 in the UK (UK100 - Currently at 7722.1)were all trading flat.

US Opens Slightly Negative

US equity futures also indicate a slightly negative opening, with the S&P 500 Futures down 0.11% at 5084.75.

Popular US Indices

• The Standard & Poor’s 500 (SPX500) slightly decreased by 0.06% to 5082.75.
• Nasdaq (NAS100) narrowly edged up to 17919.102.
• Dow Jones Industrial Average (USA30) slightly declined to 39117.

Energy: Oil Prices Edge Lower

Oil prices are trading in negative territory on Monday. The West Texas Intermediate (WTI) Crude Futures are down 0.4% at $75.952 per barrel, while Brent Crude Futures are lower by 0.6% at $80.48 per barrel.

This decline could be partly due to concerns about slowing global demand amidst economic uncertainties.

• Brent Crude (UKOIL) plummeted 0.65% to $80.445 a barrel.
• WTI Crude (OIL) dipped 0.69% to $75.92 a barrel.
• Natural Gas (NATGAS) gained 4.6% to $1.797/MMBtu.

Precious Metals

• Gold (XAUUSD) declined 0.12% to 2033.4299.
• Silver (XAGUSD) slipped 0.44% to 22.848.
• Platinum (XPTUSDline) fell slightly to 897.75.

_{Please note that the live rates are taken at about 05:48 AM GMT - compared to Friday Close.}

Summary

The market environment on Monday reflects a cautious mood. While currencies exhibit safe-haven buying in specific sectors, equity markets lack a clear direction. Energy prices, however, experience slight declines. News developments and economic data releases could further influence market sentiment as the day progresses.