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Asian stocks declined on Thursday as semiconductor stocks mirrored overnight drops on Wall Street, while Meta Platforms and Microsoft warned of accelerating costs for artificial intelligence, investors continue to become cautious about mounting capex without requisite revenue expansion. This raised concerns about similar issues for , which reports earnings along with after the close in New York today. The yen rose from near a three-month low against the dollar, with the Bank of Japan’s statement containing some hawkish undertones, leading some analysts to suggest the possibility of a December interest rate hike. More broadly, the dollar took a pause, having retreated from a near three-month peak against major peers on Wednesday. Investors were also cautious ahead of the U.S. non-farm payrolls data on Friday, the presidential election next Tuesday, and a Federal Reserve policy decision on Thursday. Japan’s Nikkei share average closed the day down 0.5%. After surveys on Chinese manufacturing and services did indicate some uptick in activity, mainland Chinese blue chips fell 0.7% and Hong Kong’s Hang Seng fell 0.3%, reversing earlier gains. Officials hold a week-long conference next week, investors are expecting Beijing to provide more clarity on stimulus; however, markets are cautious regarding another round of detail light disappointment.Away from the UK, the data calendar is still very busy. In the Eurozone October flash inflation will be released, there might be some upside risk to the widely held belief that the euro area will grow by 1.9% year over year, given the positive news from yesterday’s German numbers. However, the ECB is probably going to examine the September hike in the annual rate because energy price base effects are a feature this month.Stateside, the September personal income and spending deflator data is released today, after yesterday’s close-to-expected 2.8% q/q SAAR US GDP for Q3. the headline inflation rate on this metric is expected to be 0.2% m/m, while the core inflation rate is expected to be 0.3% m/m. Although yesterday’s ADP employment report’s record-breaking 233k was more than twice as high as anticipated, the median wage drop for those changing jobs somewhat eased, falling 0.5 percentage points to 6.2% year over year. In addition to the data from JOLTS and Consumer Confidence earlier in the week showing that overall momentum in the US employment market is continuing slowing, the pay growth difference for those who are not changing jobs is narrowing.
Overnight Newswire Updates of Note
(Sourced from reliable financial news outlets)
FX Options Expiries For 10am New York Cut (1BLN+ represents larger expiries, more magnetic when trading within daily ATR)
CFTC Data As Of 25/10/24
Technical & Trade ViewsSP500 Bullish Above Bearish Below 5775
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EURUSD Bullish Above Bearish Below 1.09
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GBPUSD Bullish Above Bearish Below 1.3050
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USDJPY Bullish Above Bearish Below 148
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XAUUSD Bullish Above Bearish Below 2680
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BTCUSD Bullish Above Bearish Below 69500
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