Latest Finance-Economy News
Gold Plunges 17% from Record Highs in Steepest Decline Since 1980
Precious metals suffered their sharpest drop since 1980 after hitting record highs, with gold falling 17%. This retreat follows recent peaks amid shifting investor sentiment. Central bank policies and economic data are key drivers this week.
AUD/USD Breaks Above 0.70 for First Time in Three Years
The Australian dollar strengthened past 0.70 against the USD, fueled by US dollar weakness from Trump's comments and expectations of an RBA rate hike. Robust Australian employment and persistent inflation bolster the case for tighter policy.
Markets see over 70% chance of RBA raising rates to 3.85%.
RBA Poised for Rate Hike at 3.85% This Week
The Reserve Bank of Australia convenes amid strong jobs data and sticky inflation, with markets pricing a 70%+ probability of a rate increase to 3.85%. This follows recent economic resilience in Australia.
Outcome expected during the week's policy meetings.
ECB Expected to Hold Rates Steady at 2.15%
The European Central Bank meets this week, likely keeping rates unchanged as inflation stabilizes near 2% target. No changes anticipated despite ongoing assessments.
ECB President Lagarde to speak post-decision.
Bank of England to Maintain Rates at 3.75%
BoE policy meeting anticipates no change at 3.75%, evaluating lagged effects of prior cuts on inflation and growth. Hawkish stance from December influences expectations.
Decision key for UK assets.
US Jobs Data and Treasury Refunding in Focus
Critical US employment figures and Treasury refunding estimates headline the economic calendar. These releases could sway Fed rate cut expectations amid recent market retreats.
S&P 500 up slightly but small caps down 2%.
Alphabet and Amazon Earnings Under Scrutiny
Magnificent 7 giants Alphabet and Amazon report this week, with cloud growth and AI investments in spotlight. Follows mixed tech results: SanDisk +21.6% on AI demand, Microsoft -7.7%.
Healthcare earnings from Eli Lilly, Novo Nordisk also due.
Japan's Snap Election Risks Political Instability
Japan's general election could shift policy if LDP-Ishin coalition loses majority. Opposition gains may pressure yen and bonds amid foreign investment flows.
Markets watch for impacts on Bank of Japan direction.
US Equity Markets Retreat After New Highs
S&P 500 gained 0.3% last week but Nasdaq (-0.2%), Dow (-0.4%), and Russell 2000 (-2%) declined. Tech divergence from earnings: Meta +8.8% on upbeat 2026 sales view.
Broader caution prevails.
S&P Assigns Ratings to Sapphire XXXIV RMBS Trust
S&P Global Ratings assigned preliminary ratings to eight classes of nonconforming and prime RMBS in Sapphire XXXIV Series 2026-1. Deal issued in Melbourne on Feb 2, 2026.
Reflects ongoing structured finance activity.
OPEC+ Ministerial Meeting Scheduled for Today
OPEC and non-OPEC producers hold ministerial meeting on Feb 2, potentially impacting oil prices and global energy markets. No specific outcomes detailed yet.
Ties into broader commodity trends like gold's fall.