Market Highlights: APAC Stocks Rise on Wall Street Momentum
Asian markets traded mostly higher today, following a robust rally on Wall Street. The rally was driven by softer-than-expected US CPI data, which bolstered market bets for Federal Reserve rate cuts. Money markets are now pricing in rate cuts for this year, returning to levels seen before the latest non-farm payrolls (NFP) report.

Geopolitical Developments: Gaza Hostage and Ceasefire Deal
A US official announced that a ceasefire agreement has been reached between Israel and Hamas, set to take effect on January 19th. The deal includes a six-week initial ceasefire phase, during which Israeli forces will gradually withdraw from central Gaza, and displaced Palestinians will begin returning to northern Gaza.

Central Bank Updates: Fed, BoJ, and BoE Insights

• Federal Reserve: New York Fed President John Williams noted that higher bond yields do not reflect a significant shift in inflation expectations and expressed no surprise at their recent rise. Meanwhile, Chicago Fed President Austan Goolsbee remains optimistic about continued progress in reducing inflation.
• Bank of Japan: Reports suggest the BoJ is considering a rate hike in January, barring any major market disruptions following Trump’s inauguration, according to Bloomberg sources.
• Bank of England: BoE policymaker Taylor commented that inflation remains on track to reach the 2% target. He anticipates rate cuts of approximately 100 basis points this year as the economy stabilizes.

European Markets: A Flat Open Anticipated
European equity futures indicate a flat start to the session, with Euro Stoxx 50 futures unchanged after the cash market gained 1.0% in the previous trading day.

Economic Calendar: Key Events Ahead
Today’s economic and corporate highlights include:

• Economic Data: UK GDP, US Jobless Claims, Philadelphia Fed Index, US Retail Sales, and the ECB meeting minutes.
• Policy Announcements: National Bank of Poland (NBP) policy decision.
• Hearings: Treasury Secretary nomination hearing for Scott Bessent.
• Speeches: Comments from Bank of Canada’s Gravelle.
• Government Debt Auctions: Supply from Spain and the US.
• Earnings Reports: Major releases include Taylor Wimpey, Whitbread, Wise, Pearson, Richemont, TSMC, UnitedHealth, Bank of America, Morgan Stanley, UBS, PNC, and Infosys.