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Markets Update: Asian markets stabilized on Thursday, buoyed by a weaker dollar and Fed rate cut expectations. Regional performance varied, with gains in Japan and Australia offset by modest losses in China and Hong Kong. Oil and wheat prices climbed, while other commodities saw mixed results.
Economic Calendar
Global Markets Roundup: 15 August 2024
On Thursday, Asian stock markets maintained stability as the U.S. dollar continued to weaken, driven by decreased U.S. Treasury yields following modest consumer inflation data. This further solidified the anticipation for the Federal Reserve to commence interest rate cuts next month.
Regional equities were impacted by the positive performance on Wall Street, with Japan's Nikkei climbing by 0.5% and Australia's stock benchmark increasing by 0.1%. Mainland Chinese blue chips saw a rise of 0.4%, while Hong Kong's Hang Seng experienced a slight decline of 0.3%. U.S. S&P 500 futures indicated a 0.1% uptick after the cash index rose by 0.4% on Wednesday, supported by the slowest increase in the consumer price index in over three years. The dollar remained weak, reaching its lowest level against the euro since the previous year's end. The euro traded steadily at $1.1009 after hitting $1.10475 in the previous session.
During Asian trading hours, the 10-year Treasury yield slightly increased to 3.84%, following a drop to as low as 3.811% on Wednesday. Traders were confident in the Fed's decision to cut rates on September 18 for the first time in 4-1/2 years, although opinions were divided on whether policymakers would opt for a 50 basis-point reduction. Despite the deceleration in inflation, signs of persistent inflation dampened expectations for a larger rate cut. A significant macroeconomic assessment awaited the release of U.S. retail sales data later on Thursday. The dollar maintained stability against the yen at 147.35, while sterling faced pressure following weak UK inflation figures. The Australian dollar recovered to $0.6600 after a volatile response to an employment increase.
Gold prices inched up to $2,449.60 per ounce, and oil prices surged on the optimism that potential Fed rate cuts would stimulate demand. Brent crude futures rose by 0.2% to $79.93 a barrel, and U.S. West Texas Intermediate crude increased by 0.3% to $77.21 after both benchmarks dropped by more than 1% on Wednesday. The wheat contract with the highest trading volume on the Chicago Board of Trade (CBOT), known as ZW1!, surged by 1.9% to hit $5.45 per bushel by 0218 GMT, marking its most significant daily gain since the start of July. Concurrently, soybeans, represented by ZS1!, witnessed a 0.4% uptick to $9.72-1/2 per bushel, while corn, denoted by ZC1!, recorded a 0.5% increase, reaching $4.02-3/4 per bushel. The price of New York cocoa (CC2) decreased by 0.7% to $7,000 per metric ton, while December London cocoa (C2) dropped by 0.35% to 5,383 pounds per ton. October raw sugar (SB1) declined by 1.5% to 18.12 cents per pound, and October white sugar (SF1) fell by 1% to $517.80 per ton. Conversely, December arabica coffee (KC2) increased by 2% to $2.3355 per pound, recovering from a 4% decrease earlier in the week. November robusta coffee (RC2) also rose by 2.6%, reaching $4,295 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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