Mike Dolan provides a glimpse into today’s landscape in U.S. and global markets, where the soaring Japanese stocks stand out amid a relatively calm global market scene. Wall Street braces for a significant inflation update, while bitcoin experiences volatility due to statements from a reportedly hacked SEC account.
While most of Asia’s stock markets face uncertainty, Japan’s Nikkei 225 hits 34-year highs, defying the regional trend. Japanese stocks, historically inexpensive, have seen substantial gains over the past year, driven by the Bank of Japan’s divergence from the G7’s interest rate tightening and the yen’s depreciation.
Expectations of the BOJ ending its negative rate policy were tempered by recent soft inflation and wage figures in Japan. Real wages of Japanese workers continued to decline for the 20th consecutive month in November, signaling economic challenges.
The recent turmoil in the cryptocurrency market was sparked by a fake post from the hacked SEC ‘X’ account, falsely claiming approval of cryptocurrency exchange-traded funds (ETFs). Bitcoin initially surged but then slid back after the SEC clarified that no such approval had been granted.
While market focus remains on the upcoming U.S. consumer price report and the start of the earnings season, other areas exhibit relative stability. Treasury auctions proceeded smoothly, impacting yields and the dollar’s performance against major currencies. S&P500 futures show marginal gains after a slight retreat on Tuesday.
Boeing continues to grapple with the aftermath of recent aviation incidents, with CEO Dave Calhoun acknowledging errors and pledging to prevent such accidents in the future. Meanwhile, Taiwan’s TSMC reports steady fourth-quarter revenue amid election concerns gripping the island.
