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Markets Update: The Federal Reserve's hint at a rate cut boosted U.S. stocks, weakened the dollar, and lifted Treasury bonds. Asian markets followed, while the euro and sterling rose. Commodities were mixed, with gold up and oil down.
Economic Calendar
Global Markets Roundup: 22 August 2024
Asian stock markets saw a slight increase in value while the dollar continued to struggle against the euro and sterling on Thursday, following the release of minutes from the Federal Reserve indicating a willingness to decrease U.S. interest rates. The majority of policymakers expressed the view that a rate cut in September would likely be appropriate if economic indicators supported such a move. In reaction to this news, U.S. stock prices rose, bond prices experienced a surge, and the dollar depreciated. The MSCI's Asia-Pacific shares index excluding Japan (.MIAPJ0000PUS) saw a 0.2% increase in early trading, with Japan's Nikkei NI225 rising by 1%. Hong Kong's Hang Seng index (.HIS) also climbed by 0.7%. U.S. ES1! and European FESX1! equity futures remained relatively stable, while commodities displayed a cautious sentiment.
The euro EURUSD was trading at $1.1151, reaching as high as $1.1173 overnight, marking its peak since the previous year and surpassing the resistance level of $1.1139, potentially aiming for the 2022 high around $1.1276. The sterling GBPUSD stood at $1.3096 and hit a more than one-year high of $1.3119 overnight. Treasury bonds rallied following the release of the Fed minutes and a significant, though expected, downward adjustment to U.S. employment figures over the past year. Ten-year yields US10Y remained stable at 3.81% in Asia on Thursday, while two-year yields (US2YT=RR) held at 3.94%.
Brent crude futures BRN1! experienced a nearly 6% decline in August, trading at $76.04 per barrel and approaching the year's lows due to rising U.S. crude WTI CL1! inventories and a weakening demand outlook in China. The devalued dollar helped keep gold GOLD above $2,500 per ounce. CBOT corn (ZC1) saw a modest increase of 0.1% to reach $3.98-1/2 per bushel, while soybeans (ZS1) experienced a slight dip of 0.4% to settle at $9.78 per bushel. The price of October white sugar (SF1) rose by 0.6% to $505.60 per metric ton. December New York cocoa (CC2) closed the session with a $57 increase, or 0.7%, reaching $7,697 per ton. Conversely, December London cocoa (C2) decreased by 0.7% to 5,473 pounds per ton. November robusta coffee (RC2) settled up by $13, or 0.3%, at $4,632 per ton after hitting a one-month peak of $4,658, marking a new high for the contract. December arabica coffee (KC2) rose by 0.3% to $2.4925 per pound.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team