Investor sentiment is buoyed by Taiwan Semiconductor Manufacturing Co. (TSMC) as its optimistic guidance for 1Q sales and 2025 capital expenditure surpasses expectations, lifting risk appetite across global markets. This positive outlook has led to gains in European and US equity futures, with the semiconductor sector appearing increasingly attractive to investors. Meanwhile, the yen experienced a brief rally on speculation of a potential Bank of Japan rate hike, though it has since stabilized, reducing its immediate investment allure.
In the US, Treasury yields remain steady following a post-CPI rally, reflecting stable bond market expectations amid ongoing discussions about inflation and the Federal Reserve's interest rate policy. The Bloomberg Dollar Spot Index's slight increase indicates modest optimism regarding the US dollar's global standing, which could influence export competitiveness and investment flows. Additionally, the Bank of England's call for pre-emptive interest-rate cuts to avert a potential recession adds another layer of complexity to the global economic landscape.
As of 01:50 on January 16, the 10-year Treasury yield holds steady at 4.65%, unchanged from its last close. This stability comes amid a backdrop of mixed signals from global markets, with investors closely monitoring developments in Washington and the potential implications of Scott Bessent's upcoming Senate committee testimony on the US dollar's role as a reserve currency.