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Markets Update: Quiet start to the week in Asia with equities slightly down; Global yields little changed after US yields fall Friday; BOJ Summary of July Opinions – YCC with greater flexibility and continuation of monetary easing;
Economic Calendar
Global Markets Roundup: 07 Aug 2023
Asian stocks were mostly negative on Monday, as investors digested the latest comments from Federal Reserve (Fed) Governor Michelle Bowman and the late retreat on Wall Street on Friday.
Bowman, who is a voting member of the Fed's monetary policy committee, said that she expects more US rate hikes will likely be needed to bring inflation under control. This weighed on sentiment in the region, as it increased the likelihood of a more aggressive tightening cycle from the Fed.
European equity futures were indicative of a lower open, with the Euro Stoxx 50 down 0.3% after the cash market closed up by 0.7% on Friday. The dollar index (DXY) was steady just above 102, while the Japanese yen (JPY) marginally lagged. The euro (EUR) was trading near 1.10 to the upside.
The Australian market was marginally lower, as investors awaited the earnings report from Australia's largest lender, Commonwealth Bank of Australia (CBA). The Nikkei 225 initially suffered from early selling, but then staged a recovery and returned to above the 32,000 level. The Hang Seng and Shanghai Composite were subdued, as investors were cautious ahead of the upcoming trade data and inflation figures.
US equity futures were slightly higher, as investors attempted to nurse some of Friday's late drop. However, the rebound was contained amid the risk-averse mood in Asia and ahead of upcoming key data releases.
The dollar index (DXY) traded rangebound on both sides of the 102.00 level, but ultimately showed some composure after Friday's data-induced selling. EUR/USD was lacklustre and breached its 200-hour moving average and nearby 1.1000 level to the downside. GBP/USD was uneventful in the absence of any major catalysts. USD/JPY nursed some of its recent losses and reclaimed the 142.00 status. Crude futures were rangebound despite Saudi hiking most of its oil prices to Asia for September.
The crude complex was contained amid headwinds from the cautious risk sentiment.
Spot gold marginally softened as the greenback gained some composure after Friday's losses. Copper futures were subdued owing to the risk aversion across the Asia-Pac region.
Looking ahead, highlights include German industrial output, speeches from Bank of England (BoE) Chief Economist Huw Pill, Fed Governor Raphael Bostic, and Fed Governor Michelle Bowman, and earnings from Siemens Energy and Airbnb.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team