Risk-off sentiment as traders look towards PPI data tonight

$E-mini S&P 500 Futures(MAR5) (ESmain.US)$ (4 Hour Chart) -[NEUTRAL]As expected, market pushed lower reaching previous target before rebounding sharply. We turn neutral for now given the wild swings in prices. With price consolidating between 5580.25 resistance and 5539.25 support. A candlestick close above 5580.25 resistance will open further rise towards next resistance at 5665.

$USD (USDindex.FX)$ (4 Hour Chart) -[BEARISH ↘ *]Prices are currently bouncing off its ascending trendline support. We turn bearish as we expect price to take a pause near 101.990 resistance level before drifting down towards 101.550 support level. Technical indicators are leaning towards a bullish momentum.

$Gold Futures(FEB5) (GCmain.US)$ (4 Hour Chart) -[NEUTRAL]Prices held between 2560 resistance and 2535.50 support. Prices are currently bouncing off its ascending trendline support. We continue to stay neutral, leaning towards a bullish bias. A candlestick close above 2560 resistance will see price push higher towards next resistance at 2570.50.

$Nikkei 225 (.N225.JP)$ (4 Hour Chart) -[NEUTRAL]We turn neutral as price is hovering between 35000 support and 37170 resistance level. A 4 hour candlestick opening above 37170 resistance level would open a push towards 38100 resistance level. Technical indicators are mixed, with prices holding above 21-EMA period and MACD advocating for a bearish momentum.

$HSI Futures(JAN5) (HSImain.HK)$ (4 Hour Chart) -[BEARISH ↘ *]We continue to stay bearish as price held below 17300 resistance level. We expect prices to continue pushing lower towards 16500 support level. Technical indicators are mixed, with prices holding below 21-EMA period.

$FTSE Singapore Straits Time Index (.STI.SG)$ (4 Hour Chart) -[BEARISH ↘ *]We continue to stay bearish on STI as we expect price to hold below 3570 resistance level. We expect price to drift towards 3450 support level. Technical indicators have yet to indicate a bearish momentum.

US markets closed higher last night, with $E-mini S&P 500 Futures(MAR5) (ESmain.US)$ and $E-mini NASDAQ 100 Futures(MAR5) (NQmain.US)$ climbing higher by 1.04% and 2.16%. This comes after unexpected increase in CPI data last night. Traders are now speculating a smaller rate cut of 25 basis points by the Fed next week. The tech sector closed higher last night, with $NVIDIA (NVDA.US)$ pushing higher by 8.15%. Traders should keep an eye out for multiple economic data tonight: initial jobless claims and PPI.

Asian markets opened higher today. $Nikkei 225 (.N225.JP)$ climbed the most by 2.43%. This is due to the underperformance of the JPY against the USD and outperforming BSI index. $SoftBank Group (9984.JP)$ and $NEC (6701.JP)$ pushed up the most by 7.33% and 6.55% respectively. $HSI Futures(JAN5) (HSImain.HK)$ drifted higher by 0.69%, with strength seen in the tech and retail trade sector today. $FTSE Singapore Straits Time Index (.STI.SG)$ edged higher by 0.37%, with the Big 3 banks opening higher today. $DBS (D05.SG)$ , $UOB (U11.SG)$ and $OCBC Bank (O39.SG)$ edged higher by 1.39%, 0.66% and 0.13% respectively. Traders should keep an eye out for unemployment rate data released tomorrow.

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