Global markets are reacting to a landslide LDP victory in Japan and China's directive for banks to reduce US Treasury holdings. Investors are focused on critical US employment and inflation data later this week.
Key Takeaways
- 1.LDP scores a landslide victory in Japan's Lower House election, boosting the Nikkei to a record high and causing JGB yields to rise.
- 2.China regulators are urging domestic financial institutions to curb US Treasury holdings due to concentration risk and volatility concerns.
- 3.The upcoming US Non-Farm Payrolls and CPI data are critical for determining if the Fed will cut rates in March or April.
Table of Contents
- OVERNIGHT NEWS
- CALENDAR
- MARKET REVIEW
- OUTLOOK
- Weekly economics release calendar
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Authors
Kenneth BrouxSantosh EjanthkarTanmay PurohitJuliette Guillaume
Securities
10Y US TreasuryXAUNKY10y JGBBrent Crude
Themes
Central Bank Policy DivergenceChina De-risking from USD AssetsGeopolitical Fiscal Discipline
Regions
Asia PacificNorth AmericaEuropeJapanChinaUnited States