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Markets update: Asian equities rose on Friday, ending August strongly. The dollar fell significantly as investors expected a Fed rate cut. Economic data like PCE and eurozone inflation will likely influence global interest rate outlook.
Economic Calendar
Global Markets Roundup: 30 August 2024
Asian equities advanced on Friday, signaling a strong finish to August, while the dollar faced its most significant monthly decline in nine months amid expectations of an imminent interest rate cut by the Federal Reserve next month. The focus later in the day will be on the release of the U.S. core personal consumption expenditures (PCE) price index and euro zone inflation data, which are expected to provide further insights into the interest rate outlook globally.
The MSCI's broadest index of Asia-Pacific shares outside Japan was up by 0.77%, on track for a monthly gain of 2.3%. U.S. stock futures continued their positive trend, with Nasdaq futures rising by 0.36% and S&P futures advancing by 0.2%. Meanwhile, EUROSTOXX 50 futures were down by 0.22%, and FTSE futures gained 0.4%. Despite concerns over Nvidia's disappointing results impacting global technology stocks, solid growth in the U.S. economy overshadowed these worries. Tech-heavy indexes like Taiwan's benchmark index and South Korea's KOSPI rebounded from losses to trade higher on Friday.
Market volatility in August was driven by weaker U.S. economic data early in the month, leading to fears of a looming recession. The unwinding of yen-funded carry trades post the Bank of Japan's unexpected rate hike further exacerbated the situation, reminiscent of the 1987 "Black Monday". Japan's Nikkei index recovered from its earlier collapse but was still on track to lose 1.6% for the month. Data from Japan showed an acceleration in core consumer prices in Tokyo, maintaining expectations of further rate hikes by the Bank of Japan.
In China, shares surged from seven-month lows, especially in the property sector. Reports suggested that China might allow homeowners to refinance mortgages to reduce borrowing costs and boost consumption. Investors are closely monitoring the pace and scale of Fed rate cuts, with expectations of significant easing this year. The dollar continued to struggle, with a sharp monthly decline in sight. Pressure on the yen eased due to narrowing interest rate differentials.
Commodity markets saw oil prices slightly higher, while gold prices dipped but were on track for a monthly gain, supported by expectations of an easing cycle by the Fed and a weaker dollar. The leading wheat contract on the Chicago Board of Trade (CBOT) ZW1! rose by 0.1% to $5.49 per bushel, while corn ZC1! increased by 0.2% to $3.96-3/4 per bushel. Soybeans ZS1! surged by 1.1% to $10.03-1/2 per bushel, reaching their highest prices since Aug. 9. October raw sugar SB1! ​​settled up 0.35 cent, or 1.8%, at 19.89 cents per lb after setting a six-week high of 19.98 cents. October white sugar SF1! rose 2.3% at $557.20 a metric ton. December arabica coffee KC2! settled down 8.85 cents, or 3.5%, at $2.476 per lb. November robusta coffee RC2! fell 0.5% at $4,901 a ton after peaking at $4,972 for the highest level in at least 16 years. December New York cocoa CC2! settled down $128, or 1.7%, to $7,613 a ton. December London cocoa C2! was barely changed at 5,274 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
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