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Markets Update: Asian stock markets displayed a positive trajectory on Monday, with reduced volatility in Japan due to a public holiday. Investors eagerly anticipate crucial economic data releases from the US and China to assess global growth prospects. The Federal Reserve's interest in the upcoming US consumer price data release on Wednesday adds to market anticipation.
Economic Calendar
Global Markets Roundup: 12 August 2024
On Monday, Asian stock markets displayed a positive trajectory, with reduced market volatility in Japan due to a public holiday. Investors are eagerly awaiting crucial economic data releases from the US and China to assess global economic growth prospects. Of particular interest to the Federal Reserve is the scheduled US consumer price data release on Wednesday. Economists anticipate a 0.2% increase in both headline and core figures, with the annual core rate expected to marginally slow to 3.2%.
Aside from July's retail sales figures, data on industrial output, housing starts, and various surveys on regional manufacturing and consumer sentiment are also set for release. The current futures market indicates a 49% probability of a 50 basis points rate cut by the Fed in September, a decline from the 100% probability noted during the recent turbulence in the Japanese equities market.
Nikkei futures (NKc1) traded at 35,570, compared to the cash close of 35,025 for NI225, although they have not fully recovered from the previous week's decline.nMSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose by 0.3%, with Taiwan's TWSE:TAIEX leading the gains with a 1.5% increase. Chinese blue chips (3399300) remained steady. EUROSTOXX 50 futures (FESX1!) climbed by 0.5%, while FTSE futures (Z1!) and S&P 500 futures (ES1!) and Nasdaq futures (NQ1!) saw a 0.1% rise in light trading. Currently, approximately 91% of S&P 500 companies have reported earnings, with 78% surpassing expectations.
In the currency markets, the dollar strengthened by 0.3% against the yen, reaching 147.08 yen (USDJPY), rebounding from last week's low of 141.68 yen. The euro remained stable at $1.0919 (EURUSD). Data from the IMM exchange indicated a decline in net short positions in dollar/yen, from 11,354 to 184,000 in early July.
In the commodities market, Oil prices saw a marginal increase after a 3.5% rise last week, amid concerns of escalating tensions in the Middle East impacting oil supply. Israeli Defense Minister Yoav Gallant's statements on Sunday to US Defense Secretary Lloyd Austin hinted at Iran's military preparations, suggesting a potential large-scale attack on Israel. In an unusual move, the Pentagon publicly disclosed Austin's decision to deploy a nuclear-powered guided missile submarine to the Middle East. Brent (BRN1!) rose by 22 cents to $79.88 per barrel, while US crude (CL1!) increased by 38 cents to $77.22 per barrel. Gold remained steady at $2,424 per ounce (GOLD), following a slight decline last week.
Anticipating the week ahead, the financial markets are looking forward to a series of key events scheduled for the period of 12th-16th August 2024:
MON: OPEC Monthly Oil Market Report; Japanese Market Holiday (Mountain Day), German Retail Sales (May), Indian Trade Balance (Jul)
TUE: IEA Oil Market Report, Australian Wage Price Index (Q2), UK Jobs (Jun/Jul), German ZEW Survey (Aug), US PPI (Jul)
WED: RBNZ Announcement and Quarterly MPS, Bank of Israel Announcement, UK Inflation (Jul), Swedish CPIF (Jul), Indian WPI (Jul), EZ GDP Flash (Q2), US CPI (Jul)
THU: PBoC MLF, Norges Announcement, Italy Market Holiday (Assumption Day), Japanese GDP (Q2), Australian Jobs (Jul), Chinese Activity Data (Jul), UK GDP (Jun), US Retail Sales (Jul), US Philly Fed (Aug)
FRI: UK Retail Sales (Jul), US University of Michigan Prelim (Aug)
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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