Stock Markets Shine Amid Weaker Inflation

Good morning, traders! As we kick off this Friday, the markets are digesting yesterday’s key events and gearing up for another round of important data releases and developments.

Starting with Thursday’s highlights, we saw some positive surprises across the board. Australia reported stronger-than-expected job data, which gave the Australian dollar a boost. Meanwhile, in the U.S., retail sales exceeded expectations, offering a positive signal for the economy, and unemployment claims came in lower than anticipated, further reinforcing the upbeat sentiment.

In the UK, GDP figures were in line with expectations at 0%, but the big news this morning is the disappointing UK retail sales data, which came in at just 0.5%, missing forecasts. 

In the currency markets, the New Zealand dollar is attempting to recover from the mid-week shock of the unexpected rate cut, while the British pound is rising despite the weaker retail sales data. Safe-haven currencies like the Japanese yen and Swiss franc remain under pressure as the market continues to favor riskier assets.

In commodities, oil is coming back to the Bear Town. On the other side of the board, Copper continues to be a standout performer, maintaining its strength as one of the top commodities this week.

The indices are climbing higher today, continuing the bullish momentum we’ve seen throughout the week. Leading the charge are the Nasdaq and Nikkei, both of which have posted impressive gains. The Nasdaq is particularly strong, continuing its upward trend fueled by positive earnings and a favorable tech sector outlook. Over in Asia, the Nikkei has been one of the top performers globally, with today’s rise adding to its already impressive 7% gain for the week.

Source: https://www.axiory.com/analytics/market-news/stock-markets-shine-amid-weaker-inflation