U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
India Services Sector Rebounds in January as New Business Gains Momentum: HSBC PMI Shows Growth 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Australia government bonds slumped across the curve during Asian session Tuesday following heavy sell-off in the U.S. Treasuries ahead of the FOMC policy decision, where an interest rate hike is fully priced in. This heavy sell-off started largely after the European Central Bank President Mario Draghi showed confidence in the pickup in inflation.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, rose 4-1/2 basis points to 2.755 percent (highest since June 14), the yield on the long-term 30-year bond traded 4 basis points higher at 3.241 percent and the yield on short-term 2-year surged 3 basis points to 2.127 percent by 03:20GMT.
“Yields on the U.S. Treasuries rose despite the ongoing concerns over trade. The lift in European yields on the back of Draghi’s comments that inflation was rising was likely a contributing factor. The U.S. 10-year yields rose 3 basis points to 3.09 percent,” noted St.George Bank in its morning report.
Draghi said that the ECB’s expectation for strong economic growth and rising core inflation over the medium-term. However, he downplayed emerging market pressures, but added that trade protectionism holds a significant risk, overall describing risks to the economic outlook as broadly balanced. He said euro area HICP inflation has risen this year and is sitting at 2%, but this largely reflects higher oil prices.
Lastly, markets will now eye Wednesday’s Federal Reserve’s monetary policy statement to understand the future direction in the fed funds rate.
“All eyes are on this Wednesday’s Fed as market participants assess the outlook for tightening in 2019. This week’s hike is almost fully priced and fed funds futures are pricing in nearly 80 percent of a 25bpt hike for December. We remain longer-term USD bears given structural challenges posed by widening fiscal and current account deficits,” noted Shaun Osborne, chief FX strategist at Scotiabank.
Meanwhile, the S&P/ASX 200 index traded nearly flat at 6,177.5 by 03:30 GMT, while at 03:00GMT, the FxWirePro's Hourly AUD Strength Index remained neutral at -51.41 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
