Stocks are opening the week with signs of slowing down. The USD keeps losing weight while commodities are getting stronger. Cryptocurrencies are also showing mixed trading, 2018 has not started well for cryptocurrencies as they are mostly on the losing side. Here are the top things to know for today’s trading day in global financial markets.
1. Global stocks lose momentum
Global stock markets were mixed, as the strong rally to start the year finally showed signs of slowing.
Most major indexes in Asia closed higher, but Chinese bonds and equities stumbled after the government announced new steps on banking oversight in an "arduous" fight on financial risks.
Among notable standouts, Hong Kong's Hang Seng Index hit its highest intraday level since 2007, before slipping into negative territory in the last hour of trade.
In Europe, the majority of the continent's bourses got off to a sluggish start, following two weeks of gains, with cyclical stocks among the biggest decliners.
Shares in some competitors of British construction firm Carillion rose after the long-struggling company collapsed, with banks refusing to lend it any more money.
Meanwhile, U.S. stock futures rose between 0.3%-and-0.5%, though Wall Street will be closed for the Martin Luther King Day holiday. All three major U.S. stock indexes closed at record highs on Friday, after some of the major financial companies in the U.S. reported strong quarterly results.
2. Dollar continues to fall
The U.S. dollar kicked off the week with more losses against its major rivals, remaining on the defensive as investors continued to price in the risk of tighter monetary policies in Japan and Europe.
The dollar index, which tracks the greenback against a basket of currencies, slipped 0.5% to 90.16 after falling as far as 90.12 at one point, its lowest since December 2014.
Against the yen, the dollar slumped to a four-month low at 110.53, after Bank of Japan Governor Haruhiko Kuroda offered a positive view on the economy and inflation, adding to expectations the BOJ could dial back stimulus earlier than expected.
The euro climbed 0.7% to a three-year peak of 1.2283, building on a 1.4% rally from last week, when minutes from the European Central Bank’s December meeting suggesting a potential hawkish shift in policy.
3. Metals looking up
Prices of precious and base metals started the week on the front-foot, rising across the board thanks to a potent combination of a softer dollar and continued robust outlook for demand.
Among precious metals, gold futures advanced to a four-month high, palladium traded at an all-time high, with silver and platinum also rising.
Meanwhile, copper jumped by the most in two months and zinc hit a fresh decade-high. Aluminum, nickel and lead also surged.
A weaker greenback makes dollar-denominated commodities cheaper for buyers in other currencies.
4. Crypto prices mixed
The prices of major cryptocurrencies were mixed, with Bitcoin inching higher, while Ethereum and Ripple pushed lower in relatively quiet rangebound trade.
Bitcoin was up around 2% at $13,765. That pushed its market capitalization up to $232 billion.
Ethereum, the world’s second largest cryptocurrency by market cap, was down 1% at $1,321. It hit a lifetime-high of $1,423.20 on Saturday.
Meanwhile, Ripple's XRP token was trading at $1.806, down around 3% for the day.
2018 has not started well for cryptocurrencies, with last week marking the second week in a row of poor performances.
