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Markets Update: Technology stocks led to a sell-off in Asian markets, with the Nikkei closing down by 1% due to chip-sector impacts. Other indices like Taiwan's TWSE:TAIEX and Hong Kong's Hang Seng also saw losses. The yen strengthened, influenced by U.S. Treasury yields. Crude oil and gold prices rose, while soybean, corn, and coffee futures experienced various fluctuations. Market focus today includes Mexico's Inflation Rate, US Jobless Claims, and Bond Auctions.
Economic Calendar
Global Markets Roundup: 8 August 2024
Technology stocks played a significant role in triggering a sell-off in Asian stock markets, while the Japanese yen and U.S. bonds experienced a recovery amidst a volatile week for global investors. In Japan, the Nikkei share average, represented by NI225, initially experienced a 2.5% decline but ultimately closed down by 1%, primarily due to the heavy impact of chip-sector stocks on the index.
Despite a two-day rebound, the Nikkei concluded the week more than 3% lower following a substantial plunge at the start of the week. In other regions, Taiwan's tech-focused TWSE:TAIEX index dropped by 2%, and Hong Kong's Hang Seng, represented by HSI, experienced a 1% loss. The broader MSCI index of Asia-Pacific shares (MIAP00000PUS) declined by 0.8%. Futures for Wall Street exhibited declines, with S&P 500 and Nasdaq futures showing losses after drops in the cash indexes on Wednesday. European STOXX 50 futures also decreased by 1.2%.
The yen strengthened as market sentiment turned negative, reaching 145.43 per dollar before settling at 146.17, while the Swiss franc, another safe-haven currency, appreciated against the dollar. Movements in U.S. Treasury yields influenced the dollar-yen pair, retracing part of their overnight increase. The dollar index, which measures the currency against major peers, experienced a slight decline, while the euro saw a slight increase. Recent adjustments in interest rate expectations by the Bank of Japan and the Federal Reserve had an impact on currency markets, with the dollar hitting a low against the yen not seen since the beginning of the year. Market participants awaited U.S. jobless claims data for potential market implications, following concerns over a U.S. economic slowdown triggered by weak monthly payrolls figures.
Crude oil prices continued their ascent, with Brent crude futures rising to $78.56 a barrel and U.S. West Texas Intermediate crude reaching $75.52, building on previous gains. Gold prices surged to around $2,390 per ounce on Thursday, rebounding from losses seen in the prior session. This increase was fueled by expectations of forthcoming US interest rate cuts and persistent scrutiny of apprehensions regarding a potential economic downturn by market participants.
The soybean contract with the highest trading activity on the Chicago Board of Trade (CBOT) ZS1! increased by 0.2% to $10.20-1/4 per bushel at 0025 GMT. Corn ZC1! rose by 0.1% to $4.01 per bushel, while wheat ZW1! inched up by 0.1% to $5.38-3/4 per bushel. ICE cocoa futures experienced a significant rally on Wednesday due to ongoing concerns about supply shortages, while arabica coffee reached a three-week high amid anxieties over Brazil's crop production. The December London cocoa C2! closed 1.4% higher at 5,503 pounds per metric ton. December New York cocoa CC2! increased by 3.7% to $7,018 per ton. September arabica coffee KC1! closed 4.4% higher at $2.463 per lb after reaching a three-week peak of $2.48. September robusta coffee RC1! rose by 2.2% to $4,481 per ton. October raw sugar SB1! closed 1.5% higher at 18.14 cents per lb. October white sugar SF1! rose by 1.4% to $514.50 per ton.
Today, the markets are focusing on the Mexico Inflation Rate, US Initial Jobless Claims, US 30-Year Bond Auction, and Mexico Interest Rate Decision.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team