world capital markets

World Capital Markets 29.01.2025

ASIA/PACIFIC


The Australian stock market closed higher on Wednesday after data showed core inflation eased more than expected in Q4 2024, increasing the chances of a Reserve Bank of Australia rate cut next month. Asian stocks rose in thin trading, with markets including China, Hong Kong, Singapore, and South Korea closed for Lunar New Year holidays. Japanese markets rallied as tech stocks rebounded after posting losses for several days. A weaker yen boosted export-related stocks. Meanwhile, minutes from the Bank of Japan’s December meeting revealed discussions on neutral interest rates.

EUROPE


European markets closed higher after Spain’s GDP grew 0.8% in Q4, surpassing forecasts. Investors also assessed corporate earnings reports, with Switzerland announcing it will remove the European Union from its stock market protection list in May, ending a restriction on the trading of Swiss shares in the bloc that had been imposed in 2019. Speaking at a Treasury Select Committee hearing, BoE Governor Andrew Bailey emphasized the need to support the UK’s economic growth.

AMERICAS  


Major U.S. stock exchanges traded flat to lower at the open as investors turned their attention to the first Federal Reserve interest rate decision of 2025. Meanwhile, the Bank of Canada cut its key policy rate by 25 basis points to 3% and removed forward guidance on further rate changes. In Latin America, Brazil aims to rebuild its reputation as a global bond issuer, with officials suggesting the country may continue its accelerated pace of debt issuance seen in 2024.

AFRICA


The South African rand is expected to trade at R17.30/$ by Q1 2026, according to BofA forecasts, compared to its current level of R18.50. Ghana formalized its debt restructuring deal with official creditors through an MoU, following an agreement reached last year. Meanwhile, Egypt successfully priced its $2 billion USD dual-tranche bond, benefiting from strong demand with combined books exceeding $9.8 billion. The bonds will be listed on the London Stock Exchange.

MIDDLE EAST


Most Gulf stock markets closed in the red, as disappointing corporate earnings weighed on sentiment. Dubai’s Emirates NBD fell 9.3% to AED20.50 after reporting flat Q4 earnings. However, Saudi Arabia’s main index bucked the trend, led by a 4.7% jump in Al Rajhi Bank, which posted an 18.7% rise in net profit to 19.72 billion riyals ($5.26 billion) in 2024. In Kuwait, National Bank of Kuwait (NBK) reported a net profit of 600.1 million dinars ($1.9 billion), up 7% YoY, driven by higher net interest income and lower provisions.


Spot gold eased 0.2% to $2,758.49 per ounce, while U.S. gold futures rose 0.3% to $2,775.60, widening the premium over spot gold rates. The move comes amid investor caution ahead of the Federal Reserve’s rate decision.

Brent crude futures were down 44 cents, or 0.57%, at $77.05 a barrel by 1400 GMT while U.S. crude futures fell 41 cents, or 0.56%, to $73.36. Brent crude futures fell 44 cents (-0.57%) to $77.05 per barrel by 1400 GMT, while U.S. crude declined 41 cents (-0.56%) to $73.36. Oil prices retreated amid concern over Libyan supply, with U.S. tariffs on Canadian and Mexican imports also in focus.