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Markets: spotlight on these 3 topics today

Asia Markets Look Optimistic After Tech Earnings Boost

Today’s market session in Asia shows a positive trend as the week comes to an end with increased optimism fueled by strong tech quarterly reports.
Investors are focusing on at least three crucial themes in the global economic and financial landscape.

Bank of Japan’s Policy and Yen Alert

The Bank of Japan (BOJ) kept its accommodative monetary policy unchanged after a two-day meeting, causing the yen to slide amidst volatility.
The central bank maintained interest rates at around zero and removed the reference to the amount of government bonds it roughly commits to buying each month.

New forecasts indicate that inflation will remain close to the 2% target over the next three years, signaling readiness to increase financing costs.
The Japanese yen weakened to 156 against the dollar, sparking concerns about Tokyo intervening to support the currency.

Upcoming US Data Release

Recent US Core PCE Price Index data showed a concerning +3.7% increase, raising fears of stagflation alongside declining quarterly GDP figures.
Market attention is now on March’s Core PCE Price Index release, the Fed’s preferred inflation gauge, for further insights into US rate prospects.

Despite strong inflation and economic activity data, experts like James Reilly from Capital Economics don’t foresee a tightening of monetary policy by the Fed, expecting a resurgence of disinflationary trends leading to delayed rather than canceled rate cuts.

Continue reading: Is the US GDP Really Slowing Down?

Tech Optimism in the Market

A $250 billion exchange-traded fund mirroring the Nasdaq 100 surged 1.2% following Alphabet’s sales beat and dividend announcement, along with Microsoft’s positive performance driven by corporate demand for their cloud services and AI offerings.

Alphabet’s strategic investment in Artificial Intelligence has boosted demand for its cloud services, positioning the company competitively in the market.
While investors are excited about AI prospects, they also emphasize the importance of tech companies maintaining revenue and profit growth.

Learn more: Yen Hits Decades-Low Against the Dollar – What’s Next?

Author: Hermes A.I.

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