- BofA warns of building stock bubble risk but sees more upside in AI
- Bank of England (BoE) set to cut rates as inflation slows, but easing seen as limited
- US approves $10bn-plus arms sales to Taiwan, China defence stocks index hits 2 mth high
- Japan signals FX vigilance, leans against yen weakness with verbal intervention
- Trump pre-Christmas $1776 check for US service members. Fiscal stimulus, at the margin.
- Honda to suspend Japan and China output as supply and demand pressures persist
- China to manage CNH liquidity, PBoC to issue CNY 40bln of 6-month bills in Hong Kong
- PBOC sets USD/ CNY mid-point today at 7.0583 (vs. prior close at 7.0450)
- South Korea flag FX volatility risks as policy divergence bites (they should call the RBI)
- Morgan Stanley sees US CPI confirming persistent inflation pressures
- BoJ is set to keep markets guessing on the terminal rate, signalling patience - preview
- Coinbase launches stock trading and prediction markets in major platform update
- Preview of the European Central Bank meeting - set to hold rates as euro zone growth firm
- Bank of Japan hike priced, forward guidance in focus - preview for Friday, December 19
- WSJ report on advice to Trump from his lawyers regarding serving a third presidential term
- New Zealand’s economy recorded a stronger-than-expected rebound in the September quarter
- investingLive Americas FX news wrap 17 Dec: Stocks continue to fall. USD ends higher
Major FX rates traded in subdued ranges through the Asian session, with markets largely marking time ahead of a heavy 24-hour run of central-bank decisions and key data releases. Volatility was limited, reflecting caution rather than conviction, as investors await clarity from multiple policy fronts.
The yen was a modest underperformer. USD/JPY ticked a little higher to around 150.80, despite, or arguably because of, only mild verbal intervention from Japan’s Chief Cabinet Secretary Minoru Kihara, who said authorities were closely watching market moves, including long-term interest rates. The lack of any concrete warning or escalation was taken as a signal that Tokyo remains uncomfortable with yen weakness but is not yet prepared to act, allowing the currency to drift softer.
Regional equities were mostly lower, tracking the soft tone on Wall Street on Wednesday, where weak price action weighed on sentiment and reinforced a defensive bias across risk assets.
Early data flow came from New Zealand, where third-quarter economic growth surprised to the upside and exceeded Reserve Bank of New Zealand forecasts. The expansion was broad-based, with investment spending showing particular strength, although household consumption lagged somewhat. While the data suggest the economy is beginning to lift itself off the canvas, markets were unconvinced. New Zealand rates edged lower and the kiwi dollar drifted modestly, reflecting lingering caution around the durability of the recovery and the near-term policy outlook.
In Washington, President Trump delivered a televised address from the White House that included several economy-related announcements. Trump said every U.S. service member will receive a one-off “warrior dividend” payment of $1,776 before Christmas, a fiscal transfer worth roughly $2.5 billion. While modest in macro terms, the move reinforces expectations of targeted fiscal support and the renewed use of direct cash payments. Trump also said he would soon name a new Federal Reserve chair who favours significantly lower interest rates, remarks likely to keep markets alert to policy-credibility risks.
The rest of Thursday brings a packed agenda. The Bank of England is expected to cut rates by 25bp to 3.75%, the ECB is seen holding policy steady, and U.S. November CPI is due. Attention then turns to Friday, when the Bank of Japan is expected to deliver a historic rate hike, to 0.75%, its highest level in three decades.
Asia-Pac stocks:
- Japan (Nikkei 225) -1.07%
- Hong Kong (Hang Seng) -0.44%
- Shanghai Composite +0.16%
- Australia (S&P/ASX 200) -0.07%
Bank of Japan Governor Ueda will make history tomorrow.
