Morning Note: A Round-up of Today's Market News.

Market News

After enjoying their best week since the November presidential election, equities put on a good showing in Asia this morning: Nikkei 225 (+1.2%); Hang Seng (+1.8%); Shanghai Composite (+0.1%). Also aiding sentiment were headlines that Trump and Chinese President Xi Jinping had positive discussions which could set the tone for relations between the world’s two largest economies.

Bonds also had a good week – the 10-year Treasury yield currently trades at 4.65%, while gold hovers just above $2,700 an ounce. Bitcoin bit a new record of $107,000. However, a contrarian bet has emerged among bond traders that the Fed’s next move might be a hike, hinging on the idea that Trump’s policies will trigger inflation.

The US market is closed today for Donald Trump’s inauguration. The President is expected to invoke emergency powers to boost domestic energy production, people familiar said. The move is among the close to 100 executive orders he plans to sign within hours of taking office.

The FTSE 100 is currently little changed at 8,.517, while Sterling trades at $1.2215 and €1.1845. 10-year Gilts trade at 4.66%, with the recent market turbulence pushing mortgage costs up to a 5-month high. Against that backdrop, asking prices for UK homes gained 1.7% in January, Rightmove said, the biggest gain in 20 months.

After a ceasefire in the Gaza war began taking hold, Brent Crude held steady around $80 a barrel after falling for the past two sessions.

Germany’s conservative CDU/CSU party fell below the 30% support in new poll. The ECB rate cut in January is ‘no foregone conclusion’, Governing Council member Robert Holzmann says.

Source: Bloomberg