Financial markets also didn’t seem too rattled by a powerful earthquake which struck central Japan on New Year’s Day.
In a fresh boost to risk appetite, the world’s largest cryptocurrency bitcoin rose above $45,000 on Tuesday for the first time since April 2022, extending its strong run from last year where it jumped more than 155% – its best year since 2020.
With the data calendar relatively scant for the day, it seems there is little in the way to sway investors betting on a slew of rate cuts beginning early this year, at least until the end of the week when a reading on euro zone inflation and U.S. jobs figures come due.
Futures pricing continues to point to a roughly 85% chance the Federal Reserve will start to ease rates in March, according to the CME FedWatch tool, while more than 150 basis points of rate cuts from the European Central Bank have similarly been priced in for all of 2024, and roughly 140 bps from the Bank of England.
In China, calls for greater policy support and expectations of further rate cuts are also at the top of investors’ minds, though for a slightly different reason.
/cloudfront-us-east-2.images.arcpublishing.com/reuters/ZUVAAOVRKRLLJJ3ROFKKV4XRFY.jpg "New year, old plot 38")
