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Markets update: This week has been marked by market turbulence, triggered by a tech sell-off exacerbated by escalating Sino-U.S. trade tensions, uncertainty surrounding U.S. President Joe Biden's presidential race prospects, dismal Chinese economic data, and an underwhelming third plenum outcome, all contributing to a dampened global outlook.
Economic Calendar
Global Markets Roundup: 19 July 2024
Asian shares are poised to end the week on a disappointing note, with investor sentiment weighed down by global economic uncertainties even as the global rate easing cycle begins.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1.56% and is heading for its worst week in three months with nearly a 3% loss. Japan's Nikkei NI225 dropped to a two-week low, declining 0.09%, extending its sharp 2.4% fall from the previous session. The Nikkei is on track to lose 2.7% for the week, its steepest weekly decline in three months. European shares looked set for a mixed start, with EUROSTOXX 50 futures FESX1! up 0.08%, while FTSE futures (Z1!) fell 0.4%. S&P 500 futures (ES1!) added 0.16%, while Nasdaq futures NQ1! gained 0.3%.
Technology stocks continued to struggle, with South Korea's tech-heavy KOSPI index KOSPI and Taiwan stocks (TWSE:TAIEX) both falling 1.5% and 2%, respectively. South Korean chipmaker SK Hynix (000660) slid more than 1%, although Japan's Tokyo Electron (8035), a chipmaking equipment manufacturer, rebounded 2.5% after an 8.75% tumble on Thursday. Shares of Taiwan's TSMC 2330, the world's largest contract chipmaker, fell 2.7%, despite posting better-than-expected earnings on Thursday and raising its full-year revenue forecast.
In China, investors were left disappointed by the lack of details provided on the implementation steps for achieving economic policy goals at the conclusion of its closely watched plenum on Thursday. Chinese officials acknowledged the "many complex contradictions" in their sweeping economic goals, indicating a challenging path ahead for policy implementation. Chinese blue-chips 3399300 were slightly higher, though the CSI300 Real Estate index (000952) fell more than 2%, as a weak property sector continued to weigh on China's growth outlook. The Shanghai Composite Index (000001) edged 0.08% lower, while Hong Kong's Hang Seng index HSI fell 2.1%.
Currency Markets and Rates View
The euro EURUSD was last 0.08% lower at $1.0887, having fallen 0.4% in the previous session after the European Central Bank (ECB) kept rates on hold as expected but left the door open to a September cut as it downgraded its view of the euro zone's economic prospects. The dollar was meanwhile on the front foot, distancing itself from a four-month low hit earlier in the week against a basket of currencies DXY. Sterling dipped 0.05% to $1.2939, while the Australian dollar AUDUSD fell 0.12% to $0.6698. The dollar was supported by strong U.S. manufacturing data and jobless figures that did little to suggest a significant slowing in the labor market, though traders are still pricing in a September rate cut from the Federal Reserve (FEDWATCH). The yen USDJPY fell 0.1% to 157.55 per dollar but was headed for a slight weekly gain, aided by suspected intervention from Japanese authorities to prop up the currency and an acceleration in core inflation last month, keeping alive expectations that the Bank of Japan could soon raise interest rates.
In Commodities and Soft Commodities
Oil prices fell, with Brent crude futures BRN1! easing 0.46% to $84.72 a barrel, while U.S. crude futures CL1! slid 0.59% to $82.33 per barrel. GOLD fell 0.8% to $2,424.93 an ounce, retreating from a record high hit earlier this week on the prospect of lower global interest rates. The LME copper HG1! lost 0.6% at $9,327.50 a metric ton. The soybean contract on the CBOT ZS1! has shown a 0.5% increase, reaching $10.47-3/4 a bushel. Additionally, the CBOT corn ZC1! has also experienced a 0.2% rise to $4.06 a bushel, while wheat ZW1!remains unchanged at $5.35-1/4 a bushel.
Looking ahead today, markets anticipate, German PPI, UK Retail Sales, Canada PPI and Retail Sales.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team