Asian Stock Market: Drifts lower amid tiring talks on Brexit, US stimulus

Asian equities cool down from record high as major risk events overstretch.
EU-UK stays far apart on Brexit, will wait till Sunday to announce future of Brexit talks.
US policymakers jostle over the details of covid aid-package, virus-led death toll jumped to record high above 3,000 in America.

Anil Panchal FXStreet

Asian shares print mild losses while easing from the record highs, flashed the previous day, amid tiring talks over key risk events like Brexit and the US coronavirus (COVID-19) stimulus. Also weighing on the risks could be the US-China tussle and a light calendar that awaits ECB and US approval of the covid vaccine.

While portraying the mood, MSCI’s index of Asia-Pacific shares outside Japan drops 0.40% whereas Japan’s Nikkei and New Zealand’s NZX 50 are on the same line during early Thursday. Australia’s ASX 200 drops near 0.70% as a tussle between Canberra and Beijing extends.

The dinner date between the European Union (EU) and the UK policymakers in Brussels ended without any decision as both the parties stay far apart on Brexit's outlook. On the other hand, US stimulus negotiations also drag even as the policymakers are mostly done with total outlay, around $900 billion.

Elsewhere, China announced temporary anti-subsidy measures on Aussie wine at a time when there is no sign of renewing the Australia-China five year trade pact. It should also be noted that the surge in the US COVID-19 infections and death toll keep market players on the edge especially when the UK, Canada and Bahrain already have the cure approved for emergency use.

Against these backdrops, S&P 500 Futures struggle for a clear direction while the US 10-year Treasury yields stop the upside momentum around .93%.

Moving on, monetary policy meeting by the European Central Bank (ECB) and the US Food and Drug Administration’s (FDA) approval of Pfizer’s covid vaccine will be the key events of the day. Additionally, the US inflation data and headlines concerning Brexit, the stimulus will offer extra direction to market players.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD rises to near 1.1650 amid dovish Fed expectations

EUR/USD edges higher after registering gains in the previous six successive sessions, trading around 1.1650 during the Asian hours on Monday. The pair appreciates as the US Dollar struggles amid dovish Federal Reserve expectations. Friday’s slower-than-expected US jobs growth suggests the US central bank could hold interest rates steady later this month.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold hits a fresh record high as rising geopolitical risks boost safe-haven demand

Gold scales higher for the third straight day and climbs to a fresh all-time peak, beyond the $4,550 level, during the Asian session on Monday. Reports that US President Donald Trump is weighing a series of potential military options in Iran following deadly protests in the country fuel the risk of a further escalation of geopolitical tensions amid the protracted Russia-Ukraine war. This, along with rising bets for more rate cuts by the Fed, offsets the recent US Dollar rally and is seen benefiting the safe-haven bullion.

Week ahead: US CPI might challenge the geopolitics-boosted Dollar

Geopolitics may try to steal the limelight from US data. A possible US Supreme Court ruling on tariffs could dictate market movements. Dollar strength might be tested if investors refocus on Fed expectations. A crammed data calendar next week, US CPI comes on Tuesday; Fedspeak to intensify. Euro weakness persists, lingering risk of deterioration in US-EU relations.

The weekender: The market that refused to blink and dispersion is the signal

Last week was supposed to be a week of verdicts. Jobs. Tariffs. Rates. Instead, markets got ambiguity and treated it like oxygen. December payrolls undershot expectations but remained well within the market-perceived bullish-for-equities tolerance. 50,000 jobs added and unemployment down to 4.4% kept the data squarely in the Fed no-action zone.

XRP trades under pressure amid weak retail demand

XRP presses down on the 50-day EMA support as risk-averse sentiment spreads despite a positive start to 2026. XRP faces declining retail demand, as reflected in futures Open Interest, which has fallen to $4.15 billion.