FX168 Financial News (Asia Pacific) reported that on Tuesday (December 17), Asian stock markets exhibited instability while the dollar remained strong. Traders are preparing for several central bank meetings this week, among which the Federal Reserve is expected to cut interest rates, while the Bank of Japan may temporarily maintain its policy.

In Asia, the MSCI Asia-Pacific excluding Japan Index fell by 0.3%. However, the index is up 10% for the year, marking its strongest performance since 2020. The Australian stock market increased by 0.82%. The Nikkei/Yen in Japan decreased by 0.15%. #Decision Analysis#

The South Korean Kospi Index dropped by 0.57%, accumulating a decline of approximately 7% for the year, making it the worst-performing market in Asia this year. South Korean President Yoon Suk-yeol was impeached and suspended from office on Saturday due to a brief attempt to implement martial law, putting pressure on the market.

European stock market futures indicate a potentially flat opening, with the Eurozone Stoxx 50 Index futures down 0.16%. The German DAX futures fell by 0.06%. The United Kingdom FTSE futures declined by 0.24%.

Week

However, it was noted that these measures may have to wait until early next year when the details of the USA's tariff policy towards China become clear.

This week, several central banks including the USA, Japan, the United Kingdom, Sweden, Norway, Indonesia, and Thailand will hold meetings: the Bank of Japan, the Bank of England, the Norwegian Bank, and the Bank of Thailand are expected to keep their policies unchanged. The Swedish central bank is expected to cut rates. The Bank of Indonesia may raise rates to support the Indonesian rupiah, which is currently near a four-month low.

The market anticipates that the Federal Reserve will lower rates by 25 basis points on Wednesday. According to the CME FedWatch tool, the market's perception of the likelihood of only one rate cut of 25 basis points throughout 2025, or even no cuts at all, has increased from 21% a week ago to 37%.

Saxo's chief investment strategist Charu Chanana stated that the market will closely watch for signs of the Fed's "hawkish rate cuts." This means that although the Fed is easing policy, it may express caution about future rate cut steps through an updated dot plot or Chairman Powell's press conference.

In the Forex market, the USD remains at 106.88, up about 5% this year. The yen against the dollar is at 154.11, with the market widely expecting the Bank of Japan will not raise interest rates this week. The euro against the dollar is at 1.050775, down nearly 5% this year. The British Pound against the dollar is at 1.26775, remaining stable.

Bitcoin, the most well-known and largest cryptocurrency, remains near the historical high of $107,821 set on Monday, currently trading around $0.1065 million.

Since the U.S. election in early November, the cryptocurrency market has performed strongly, with investors betting that the incoming Trump administration will provide a more favorable regulatory environment. Bitcoin has increased by 150% in 2024.

In terms of commodities, oil prices have remained relatively unchanged, with U.S. WTI Crude Oil Futures down 0.11% at $70.63 per barrel. Brent Crude Oil Futures dropped 0.04% at $73.88 per barrel.

Spot Gold fell by 0.1% to $2,650 per ounce. Gold prices have increased by 29% in 2024, marking the best performance since 2010.