What changed in global markets while you were sleeping: Top 10 updates

Global Markets update: Here's a look at where global markets stand today and what can you expect

The dollar started the week on a steady note as US economic data bolstered investor confidence ahead of the Federal Reserve policy meeting. Although, escalating geopolitical tensions in the Middle East kept risk sentiment in check but the dollar index inched 0.01% higher to 103.55. Here's a look at where global markets stand today and what can you expect:

Global Markets update: Stock market information on the floor of the New York Stock Exchange (NYSE) in New York, US. (Bloomberg)

1. The dollar index is set for a 2% gain in January as expectations temper of early and deep US interest rate cuts.
2. The Fed in December surprised markets by projecting 75 basis points of rate cuts in 2024. But strong economic data has prompted traders to adjust expectations.
3. Oil prices jumped 1% on fuel supply concerns after a missile struck a Trafigura-operated fuel tanker in the Red Sea.
4. US prices rose moderately in December, keeping the annual increase in inflation below 3% for a third straight month.
5. Investor attention this week will be on the Federal Reserve's two-day policy meeting which starts on Tuesday. Investors will also watch for a slew of economic data including a US payrolls report.
6. The euro was down 0.05% at $1.0847 while Sterling was last at $1.2703, up 0.04% on the day ahead of Bank of England meeting later this week.
7. The Japanese yen strengthened 0.01% to 148.14 per dollar. The Asian currency is down nearly 5% against the dollar in January- its weakest monthly performance since June 2022.
8. The Australian dollar rose 0.21% to $0.659, while the New Zealand dollar gained 0.18% to$0.610.
9. Chinese equities will hope to build on their first weekly gain since the end of December. This comes as the nation’s securities regulator announced that it will halt the lending of certain shares for short selling from Monday following an alarming slide in Chinese stocks.
10. Singapore’s central bank kept its monetary policy settings unchanged for a third straight time.