Asian markets are poised for positive trading, buoyed by Wall Street‘s upbeat session, where stocks surged as volatility eased. The Vix index settled near the 12-handle following a perceived final move by the ECB and stronger U.S. retail sales data, especially after the dovish U.S. CPI report suggested that inflation concerns might have peaked.
In a boost for the cyclical sector, the PBOC announced a 25 bps RRR cut, propelling oil benchmark prices to new year-to-date highs. WTI crossed the USD 90/bbl mark. Upcoming Chinese industrial production and retail sales data will significantly influence global risk sentiment. This comes after the PBoC’s recent rate cuts, which have set expectations for improved figures.
Meanwhile, the release of Empire State manufacturing, industrial production, and University of Michigan sentiment data is anticipated. If these data points come in flat or below expectations, it could further fuel the market rally. However, it’s important to note that today is Quadruple Witching Day, a day known for heightened volatility due to the simultaneous expiration of futures and options, which means technical trades will also shape market dynamics.
