
U.S. stock futures were little changed in early trading today following a mixed trading session on Tuesday, with the Dow Jones, S&P 500 and Nasdaq 100 futures all slightly higher. Software stocks remained under pressure amid ongoing concerns about AI-driven disruption.
Investors are now focused on the release of the Federal Reserve’s January meeting minutes on Wednesday and Friday’s personal consumption expenditures (PCE) report, the Fed’s preferred inflation gauge, which could shape expectations for monetary policy. Markets are expected to stay cautious ahead of the data.
In Asia, Japan’s exports surged 16.8% year over year in January, marking the fastest growth since November 2022 and significantly beating expectations of 12%. The sharp rise was driven by strong shipments to Asia and Western Europe despite a decline in exports to North America. Following the data, Japan’s Nikkei 225 gained 0.9% and the Topix rose 1.2%.
Iran partially closed sections of the Strait of Hormuz on Tuesday during Revolutionary Guard military drills, citing security precautions. The move comes as U.S.–Iran talks continue in Geneva.
Oil prices remained under pressure after Iran signaled progress in talks with the U.S., easing fears of supply disruptions near the Strait of Hormuz. Brent and WTI hovered near two week lows.
Gold and silver edged lower as a steady U.S. dollar and easing geopolitical tensions reduced safe haven demand. The New Zealand dollar fell after its central bank indicated policy would remain accommodative, and the yen strengthened modestly.
NZD/USD fell about 0.9% in early trading today, breaking below 0.6000 after the Reserve Bank of New Zealand left its cash rate unchanged at 2.25%. The New Zealand dollar weakened as RBNZ Governor Anna Breman signaled no near term rate hikes, saying tightening would only come with stronger growth and higher inflation, though a hike by year-end remains possible. Her comments pushed back against market expectations for earlier hikes.
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