_edited_edited.png)
Markets update: Asian markets rallied on Friday, led by Japan's Nikkei, as improved U.S. economic data calmed recession fears, easing Fed rate cut expectations. A stronger dollar impacted currencies and commodities, with oil up, gold down, and mixed agricultural prices.
Economic Calendar
Global Markets Roundup: 16 August 2024
Asian markets were set for a positive week on Friday, with Japan's Nikkei index on track to deliver its most robust performance in over four years. The positive market sentiment, influenced by Wall Street, was backed by a steady dollar and U.S. Treasury yields. This week witnessed a calming of recent market turbulence, as a string of positive U.S. economic indicators allayed concerns about a recession in the world's largest economy, resulting in a more gradual outlook for U.S. interest rate cuts.
Jonas Goltermann, Deputy Chief Markets Economist at Capital Economics, pointed out that the market's reaction to the early August U.S. data was exaggerated, largely due to the swift unwinding of crowded positions in certain markets. While the chances of a U.S. recession have slightly risen, there are no significant indications of an imminent crisis. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) climbed by 1.3%, signaling a weekly rise of more than 2%. U.S. futures continued their upward trajectory following a strong showing on Wall Street.
S&P 500 futures ES1! inched up by 0.13%, Nasdaq futures NQ1! increased by 0.2%, EUROSTOXX 50 futures FESX1! gained 0.17%, while FTSE futures Z1! dipped by 0.06%. Encouraging U.S. retail sales figures and low weekly jobless claims further boosted the positive market sentiment, reinforcing expectations of gradual Federal Reserve rate cuts. The market is currently pricing in a 25% probability of a 25-basis-point cut in the next month, down from 55% a week earlier.
Japan's Nikkei NI225Â soared by nearly 3%, surpassing other Asian benchmarks, while Chinese blue-chips 3399300Â and Hong Kong's Hang Seng Index HSIÂ also experienced gains. The Nikkei was on course to achieve an 8% weekly increase, its strongest performance since April 2020, aided by a weaker yen.
In the currency markets, the Swiss franc USDCHFÂ was also losing ground after a flight to safety last week. The euro EURUSDÂ struggled against a robust dollar, supported by elevated U.S. Treasury yields.
In commodities, Oil prices dipped slightly on Friday but were on track for a weekly gain, while spot gold GOLDÂ saw a minor decline. The main soybean contract on the Chicago Board of Trade (CBOT) known as ZS1! saw a 0.2% decrease, closing at $9.66-1/4 per bushel. Likewise, wheat, represented by ZW1!, fell by 0.1% to $5.28 per bushel, and corn, denoted by ZC1!, decreased by 0.5% to $3.95 per bushel. October price of raw sugar, represented by SB1!, experienced a 0.5% decline to 17.88 cents per lb, marking its lowest level in nearly two years subsequent to a previous peak of 17.64 cents earlier in the same month. Robusta coffee for November, denoted by RC2!, saw a 2.0% increase to $4,378 per ton, following a 2.5% rise in the preceding session. Conversely, London cocoa for December, indicated by C2!, decreased by 0.8% to 5,320 pounds per ton.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Comments