Fed Bets News Today

Corporate reforms in Japan and South Korea will support a value thesis, according to JPMorgan Asset Management and AllianzGI. Meanwhile, M&G Investment Management is attracted by near record-low valuations for Chinese stocks. Other haven plays are exporters and Indias domestic-driven equities. The outlook is even dimmer for currencies and bonds.

The U.S. dollar extended its early weakness against other major currencies in the Asian session on Friday following the release of the U.S. producer inflation data showing the smallest annual increase in prices in nearly three years, adding to bets that the Fed could soon end its monetary tightening campaign.

Credit market rallies most in two years as inflation abates. The Goldman Sachs Short Index surged 10.9% Thursday, with a two-day 17.5% spike. Read more here.

Gold prices are modestly higher in Asia-Pacific trading after an overnight drop that halted a multi-day rally. Prices are trading at key technical levels ahead of Fed speakers and the US jobs report.

Stock futures extend gains as dollar retreats, Fed bets fade; Week Ahead: earnings in focus with Tesla, Netflix headlining; Twitter shares lower as musk seeks February trial to settler takeover battle; Google shares set for adjusted debut after 20-for-1 split and IBM earnings on deck with cloud growth in focus.

Gold prices are rising this week despite an aggressive shift in hawkish Fed rate hike bets. Bullion traders have a close eye on Fed Chair Powell's confirmation hearing and incoming CPI data.

Gold prices dropped as APAC traders digested the FOMC minutes, causing the US Dollar to rise near its yearly high. Traders eye the upcoming Jackson Hole symposium.