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Markets Update: APAC Stocks Fall as Nvidia Euphoria Wear - Equity markets decline amid waning Nvidia impact; Jackson Hole in focus
Economic Calendar
Global Markets Roundup: 25 Aug 2023
Asian stocks fell on Friday, following the weak handover from global counterparts after the Nvidia-related euphoria wore off.
The Nikkei 225 fell 0.8%, the Hang Seng Index fell 0.7%, and the Shanghai Composite Index fell 0.6%.
European equity futures are indicative of a lower open with the Eurostoxx 50 future -0.3% after the cash market closed down 0.8% yesterday.
The US dollar index (DXY) has extended its upside above 104 and is firmer against its major peers. The euro is trading at 1.07 against the dollar, while the Japanese yen has reclaimed 146 against the dollar. ECB President Christine Lagarde said that it is "much too early" to think about a rate-hike pause, while Croatian central bank governor Boris Vujcic said that it remains to be seen whether interest rates are restrictive enough. Offshore Alliance members at Woodside Energy (WDS AT) have endorsed the in-principle agreement reached with the company.
The ASX 200 fell 1.3%, the Nikkei 225 fell 1.7%, and the Hang Seng Index fell 2.2%.
The selloff was triggered by weak earnings from US technology companies, which raised concerns about the health of the global economy.
Forex
The US dollar index (DXY) extended its gains above 104, as the dollar was supported by lower jobless claims data and hawkish comments from Fed officials. The euro fell to its lowest level against the dollar since 2020, while the Japanese yen also weakened.
Fixed Income
10-year Treasury futures traded subdued, as investors awaited the speech by Fed Chair Powell at the Jackson Hole Symposium. Bund futures were also lacklustre, while 10-year JGB futures conformed to the dull mood.
Commodities Crude oil prices traded rangebound, as the market was weighed down by concerns about the global economic slowdown and the strength of the dollar. Spot gold was contained as the dollar remained firm ahead of key central bank speeches. Copper futures mildly extended beneath yesterday's lows owing to the broad risk-off mood.
Looking ahead, key economic data releases include German Ifo business climate index, US University of Michigan consumer sentiment index, and speeches by Fed Chair Jerome Powell, Cleveland Fed President Loretta Mester, Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, and ECB President Christine Lagarde.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team