U.S. Stock Futures Edge Higher as Micron Earnings Boost AI Sentiment Ahead of CPI Data 
Singapore Growth Outlook Brightens for 2025 as Economists Flag AI and Geopolitical Risks 
Trump Orders Blockade of Sanctioned Oil Tankers, Raising Venezuela Tensions and Oil Prices 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
New Zealand Budget Outlook Shows Prolonged Deficits Despite Economic Recovery Hopes 
BoE Set to Cut Rates as UK Inflation Slows, but Further Easing Likely Limited 
Asian Stocks Slide as AI Spending Fears and Global Central Bank Decisions Weigh on Markets 
Japan PMI Data Signals Manufacturing Stabilization as Services Continue to Drive Growth 
Asian Fund Managers Turn More Optimistic on Growth but Curb Equity Return Expectations: BofA Survey 
Australian Consumer Sentiment Slumps in Early December as Inflation Fears Resurface 
Chinese Robotaxi Stocks Rally as Tesla Boosts Autonomous Driving Optimism 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Asian Currencies Slip as Dollar Strengthens; Indian Rupee Rebounds on Intervention Hopes 
Oil Prices Rebound as Trump Orders Blockade of Sanctioned Venezuelan Tankers 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
RBA Unlikely to Cut Interest Rates in 2026 as Inflation Pressures Persist, Says Westpac 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
U.S. September Inflation Data in Focus
Thursday’s Consumer Price Index (CPI) release is expected to show that inflation moderated at the end of Q3, following a stronger-than-expected jobs report last week. This data will be crucial for understanding how the Federal Reserve approaches rate cuts in the coming months. A tamer Producer Price Index (PPI) on Friday would further support the case for controlled inflation, reinforcing the Fed’s target of 2%.
According to UBS analysts, the CPI report is pivotal: “If prices rise faster than expected, alongside strong labor data, the likelihood of the Fed skipping a November rate cut increases.” The Fed’s September meeting minutes, to be released on Wednesday will provide insights into the central bank’s decision-making and its outlook on future rate adjustments.
U.S. Earnings Season Kicks Off
Q3 earnings season is beginning, with major financial firms such as JPMorgan Chase, Wells Fargo, and BlackRock reporting on Friday. These results will offer a vital view into the economy’s health, including loan demand and consumer spending. Investors will also watch for signs that the recent Fed rate cut stimulates economic activity, such as auto sales or other major purchases. Additionally, results from companies like PepsiCo and Delta Air Lines will provide further context on consumer demand and market resilience.
Oil Price Volatility Amid Geopolitical Tensions
Oil prices experienced a sharp rise last week, with Brent crude gaining 8% and WTI rising 9.1%, mainly due to escalating tensions in the Middle East. However, U.S. President Joe Biden's discouragement of Israeli action on Iranian oil facilities helped contain price spikes. Iran, a key OPEC+ member, produces around 3.2 million barrels per day. Any disruption to its supply could significantly impact global oil markets, despite OPEC+'s spare production capacity.
Central Bank Outlook: RBNZ and RBA
The Reserve Bank of New Zealand meets on Wednesday, with speculation of a rate cut following the Fed's example. This decision could indicate a shift in global monetary policies to stimulate economic growth. Meanwhile, the Reserve Bank of Australia will publish its September meeting minutes on Tuesday, providing insights on its hawkish hold and the domestic economy.
