Asian equity markets are trading positive on the back of continued upside on Wall Street, with investors focusing on earnings announcements. On the Central Bank front, the continued dovish tone from Fed speaks yesterday kept risk assets on the radar for traders looking for short to medium-term exposure to the upside. The highlight is Vice-Fed President Clarida, who reiterated benchmarks for a lift-off could be met by the end-2022, but the Fed is still a way off from considering rate hikes.
On the energy front, the sector and its benchmarks will be closely watched as the winter intensifies in many parts of the globe and higher oil prices could trigger some reaction from major economies to ease inflationary pressures. WTI and Brent were choppy but ultimately settled firmer, although off the highs after reports that U.S. President Biden is to make an announcement later this week to address high energy prices. Some suggested it could come after the STEO on Tuesday. The information follows remarks last week that the White House was looking at a potential Strategic Petroleum Reserve release to help combat high energy prices. Focus this week turns to PBOC Gov Yi, Fed’s Powell, Bullard, Daly & Kashkari, ECB’s Lagarde, Knot, Schnabel, Panetta & Rehn and BoE’s Bailey & Broadbent, with particular focus on any clues that would warrant an adjustment of its taper process and rate hikes expectations, while U.S. Consumer Price Index and Producer Price Index data are also a highlight.
