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Markets update: Asian markets rose, led by Japan, while US stocks rebounded. Positive Chinese data and Fed hopes boosted sentiment, but a stronger dollar, rising yields, and currency volatility offset gains. Commodity prices were hit by geopolitical tensions. Investors eye Italy's inflation and Canada's jobless data.
Economic Calendar
Global Markets Roundup: 9 August 2024
Asian markets are concluding a challenging week on a positive note, with Japanese stocks edging closer to a full recovery following Monday's substantial losses. The yen depreciated as expectations for a significant U.S. interest rate reduction waned. On Friday, the Nikkei index in Japan surged by 1.7%, mirroring a robust rebound on Wall Street, nearly offsetting the 13% drop earlier in the week. Simultaneously, the MSCI's Asia-Pacific index, excluding Japan, rebounded by 1.4%, reversing the losses of the previous day. The overall weekly decrease for the index stood at 0.3%.
Favorable data on U.S. jobless claims assuaged concerns regarding the labor market, leading to a decreased probability of a half-point interest rate cut by the Federal Reserve in September. Stock markets, previously rattled by U.S. recession fears, rebounded with the Nasdaq climbing by 3% and the S&P 500 by 2.3%. Positive Chinese economic indicators, such as higher-than-anticipated consumer inflation, contributed to the enhanced market sentiment. Chinese blue-chip stocks increased by 0.5%, while Hong Kong's Hang Seng index surged by 1.4%.
Despite recent market turbulence, some Federal Reserve officials expressed confidence in moderating inflation trends, hinting at potential interest rate reductions in the future. The U.S. dollar appreciated against the yen, supported by positive economic data. Bond yields rose as demand for safe-haven assets diminished, with U.S. 10-year yields climbing to 3.9781%.
The yen experienced a marginal 0.1% decline against the dollar, resulting in USDJPY trading at 147.08. Despite a notable 1.5% decrease on Monday, the pair is on track to achieve a weekly gain of approximately 0.4%. Concurrently, the dollar also exhibited a slight 0.1% decrease in value against the franc, with USDCHF at 0.8659, positioning for a 1% weekly rise. The dollar index, which assesses the currency's performance against the yen, Swiss franc, euro, pound, and two other currencies, recorded a 0.1% drop at 103.17 following three consecutive days of growth. Although it reached a peak of 103.54 overnight, the first time since August 2, it is presently trading at a level similar to that of a week ago. The euro remained relatively stable at $1.0921, reflecting a marginal 0.1% increase compared to the previous week. Notably, the euro surged to $1.1009 on Monday, a level unseen since January 2. The pound maintained its position at $1.2756, rebounding by 0.49% overnight from a month-long low. Nonetheless, it is expected to record a 0.4% decline for the week, marking the fourth consecutive week of losses. Meanwhile, the Australian dollar remained steady at $0.6595, briefly touching $0.6604 for the first time since July 24, buoyed by optimistic statements from the Reserve Bank of Australia governor the day before. It registered a weekly increase of 1.24%.
Commodity prices, including crude oil and gold, fluctuated amid geopolitical tensions in the Middle East. Brent crude and West Texas Intermediate crude recorded weekly gains, while gold prices experienced a slight decline. The price of Corn ZC1! decreased by 0.31% to $3.95-3/4 per bushel, representing a weekly decline of 1.86%, marking the second consecutive weekly drop. Wheat ZW1! experienced a marginal increase of 0.51% to $5.4-1/4 per bushel, positioned to achieve a second consecutive weekly gain with a 0.23% rise for the week. The primary soybean contract on the Chicago Board of Trade (CBOT) ZS1! increased by 0.57% to $10.14 per bushel, although it is set for its second consecutive weekly decrease, having fallen by 1.3% thus far this week.
Anticipated in today's market outlook are forthcoming reports on the Italy Inflation Rate and the Canada Unemployment Rate.
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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