Global Market Quick Take: Asia – May 9, 2024 Global Market Quick Take: Asia – May 9, 2024 Global Market Quick Take: Asia – May 9, 2024

Global Market Quick Take: Asia – May 9, 2024

Macro 6 minutes to read
Charu Chanana

Head of FX Strategy

Key points:

  • Equities: ARM earnings send shivers to chip stocks, European equities outperform
  • FX: GBP could face downside pressures if Bank of England hints at a June rate cut
  • Commodities: US crude stocks inventories show a surprise drop
  • Fixed income: Weak 10-year auction signals higher yield demand for duration
  • Economic data: Bank of England, US jobless claims, China trade


The Saxo Quick Take is a short, distilled opinion on financial markets with references to key news and events. 

Equities: After a dull overnight session where US equity indices struggled to find a direction, US index futures pointed slightly lower. Macro and earnings catalysts are starting to thin out, and focus remains on Fed speakers. Uber fell more than 5% as it posted a surprise quarterly loss. Reddit, however, gained 4% on earnings upside. After-hours, chip designer ARM fell nearly 10% as its annual revenue guidance largely disappointed investors. ARM’s report is sending ripple effects to other chipmaker stocks such as Nvidia and AMD as well in the post-market session.

Meanwhile, European equities extended their recent gains, with EuroStoxx 600 and UK’s FTSE 100 again reaching fresh highs. Japan’s Nikkei 225 opened in green, but chip stock shivers and BOJ’s tightening hints could cap gains. China and HK stocks are also in correction after the recent run higher, and China’s trade data will be on watch today.

FX: Some more strengthening seen in the US dollar as equity momentum faded and Fed speakers maintained their narrative on inflation concerns. JPY was back on the radar as it weakened again, partially erasing the intervention-driven gains from last week. USDJPY is now back above 155.55 and verbal jawboning from authorities continued. Worth noting that comments from BOJ have started to tilt towards hinting at the next rate hike, and BOJ summary of opinions released this morning also talked about deepening talks on rate hike timing. USDSEK rose on Sweden’s interest rate cut, and GBPUSD will be in focus today after it slipped below 1.25. Watch for a dovish tilt in BOE’s vote split, that could prompt the markets to take up the pricing of a June rate cut, and create downside pressures on GBP. GBPAUD could slip towards 1.89 and EURGBP could rise to 0.8650 in such a scenario. AUDUSD has slipped below 0.66 on dollar strength and AUDNZD is back below 1.0960.

Commodities: Crude oil prices rose as US inventories signalled a tight physical market with crude stockpiles declining by 1.36 million barrels last week. Moreover, The Biden administration raised the price it is willing to pay to refill the country’s depleted strategic oil reserve. The Energy Department said it will pay as much as $79.99/bbl, up from an informal cap of $79/bbl. Read this article to get our latest views on crude. Hawkish Fed comments and stronger dollar continued to weigh on metals, while grains also retreated after recent gains on weather-related concerns.

Fixed income: The demand at the 10-year auction was underwhelming, suggesting that investors are demanding a higher yield to hold duration. Gilts in focus today as BOE decision is due and risk of a dovish tilt in vote split remains. JGB yields also key with BOJ hinting at a possible June rate hike.


  • Fed’s Collins (2025 voter) acknowledged there are risks to cutting too soon and that rates will have to be held at a two-decade high for longer than previously thought. But she is optimistic the Fed can get to 2% inflation in a reasonable time frame. She also said that she expects some factors underpinning economic resilience to wane.
  • Sweden’s Riksbank kicked off the easing cycle with a rate cut yesterday to 3.75% as expected. This is the first Swedish rate cut since 2016. The policy statement said “inflation is approaching the target while economic activity is weak”. The bank also says policy rate expected to be cut 2 more times in H2.
  • Japan’s wage growth data for March showed a tepid growth of 0.6% in labor cash earnings vs. 1.4% previously. However, adjusted measure that excludes sample changes rose 2.2% YoY from 1.9% last month.
  • Bank of England Preview: Markets are expecting a dovish hold by the MPC, but a June rate cut is not yet priced in by markets. A 7-2 vote split is in the cards, and that could potentially set the stage for a rate cut in June. To read more on what this means for Gilts and Sterling, go to this article.

Macro events: BoE Announcement & May MPR, US jobless claims, China Trade Balance (Apr). Speakers: BoE’s Bailey, Pill; ECB’s Cipollone; ECB’s de Guindos; Fed's Daly.

Earnings: Enel, SoftBank, Brookfield, 3i Group


  • Airbnb forecasts weaker Q2 revenue despite robust demand for international travel (Reuters)
  • Arm's annual revenue forecast fails to impress investors; shares tumble (Reuters)
  • Robinhood's crypto business drives massive earnings beat (Reuters)
  • Hawkish Singapore Policy, Cooling Inflation a Tailwind for Bonds (Bloomberg)
  • Biden Raises Oil Price US Is Willing to Pay to Refill Reserves (Bloomberg)
  • Beyond Meat reports wider-than-expected Q1 loss, sales decline (Reuters)
  • Uber shares tumble as weaker ride-share demand hurts Q2 forecast (Reuters)


For all macro, earnings, and dividend events check Saxo’s calendar.

For a global look at markets – go to Inspiration.


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (
- Full disclaimer (

40 Bank Street, 26th floor
E14 5DA
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo is a registered Trading Name of Saxo Capital Markets UK Ltd (‘Saxo’). Saxo is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo assumes no liability for any loss sustained from trading in accordance with a recommendation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc.

©   since 1992