In the Asia-Pacific region, stocks made gains overnight, propelled by a robust performance in video game stocks, particularly in Chinese and Hong Kong indexes. European markets also experienced upward movement at the beginning of the final trading week of 2023. Global major indexes remained close to record highs, with the S&P 500 aiming for an all-time high after a positive day on Wall Street. In the U.S., stock futures showed minimal changes during early premarket trade on Wednesday. With the final three days of the trading year underway, thin trading volumes were anticipated due to a sparse economic calendar and the conclusion of major central bank meetings.
Asia Pacific
Some members of the Bank of Japan advocated for a more in-depth discussion on a potential exit from ultra-loose monetary policy. While the majority agreed to maintain substantial stimulus for the time being, differing opinions emerged regarding the cautious approach to raising interest rates versus the need to prepare for a future exit.
The Yen is currently positioned above the support zone near the $141.5 level.
Europe
European shares saw gains on Wednesday, driven by a tech stock boost following a positive Wall Street rally. Optimism persisted regarding potential U.S. interest rate cuts in March.
The Euro reached a local high but faces resistance near the upper bound of the global weekly range. The Sterling is poised to test resistance around the $1.2760 mark.
America
Wall Street futures were subdued on Wednesday, following the S&P 500's close to an all-time high in the previous session amid expectations of an early Federal Reserve interest rate cut in March. Low premarket trading volumes were attributed to year-end holidays and a lack of strong cues, aside from the upcoming weekly jobless claims data on Thursday.
The U.S. Dollar is currently testing support around the 1.3150 level against the Canadian dollar.