- Asian stock markets gained ahead of US economic data and key central banks' meetings, which will provide new insights into the possibility of interest rate decreases in the next year.
- While stocks in mainland China steadied, Hong Kong market indices increased as traders awaited outcomes from a meeting of Chinese economic policymakers that might reveal how much stimulus to anticipate in the next year.
- While reversing gains in Japan, equity indexes increased in South Korea and Australia as well. That follows a calm start to the week in US markets, with traders pushing them upward for a third day in a row. While Treasury 10-year yields continued to decline by two basis points, the dollar experienced a minor depreciation. Futures on European stocks increased slightly.
- Wall Street will be able to tell whether the trend towards disinflation is sustained by Tuesday's consumer price index. One day prior to the final Federal Reserve decision of 2023, which is expected to include a rate hike and the publishing of the Summary of Economic Projections, the report will be made public. The question is if, in response to investors' aggressive dovish repricing, the Fed will attempt to moderate policy easing expectations.
- According to Saxo Markets market strategist Charu Chanana, "this could be a monumental week for Asian markets if US CPI data and the Fed re-confirm that the rate hike cycle has ended." "As market participants wait for a push on monetary, fiscal, and industrial policies to meet the 2024 growth target, announcements from China's CEWC could also be crucial."
