_edited_edited.png)
Markets Update: Asian Stocks Suffer Further Selling as FOMC Minutes Signal More Tightening
Economic Calendar
Global Markets Roundup: 17 Aug 2023
Asian stocks mostly suffered another day of selling on Thursday, following the losses on Wall Street overnight.
The minutes of the Federal Open Market Committee's (FOMC) June meeting showed that most officials saw "significant" upside risks to inflation and could require further tightening.
The sell-off was also fueled by several weak data releases from the region, including a decline in Chinese manufacturing activity.
European equity futures were indicative of a lower open, with the Euro Stoxx 50 down 0.6%.
The dollar was steady against most other currencies, with the DXY index trading around 103.50.
The euro was trading below 1.0900, while the yen was little changed at 146.00. The Australian dollar was the weakest performer, lagging after a disappointing jobs report.
The Australian market (ASX 200) retreated after a surprise contraction in the headline employment change and a larger-than-expected uptick in the unemployment rate. The Japanese market (Nikkei 225) declined after soft data releases, including a miss on machinery orders.
However, the declines in exports and imports weren't as bad as feared, with exports printing in contraction territory for the first time in 29 months. The Hong Kong market (Hang Seng) and the Chinese market (Shanghai Composite) were pressured at the open, with the Hong Kong benchmark entering bear market territory after declining more than 20% from its January high.
However, Chinese markets then recovered most of the earlier losses following another firm liquidity injection by the central bank and recent economic pledges by Premier Li.
Commodities
Crude oil futures were despondent after the recent selling pressure, owing to the risk-off sentiment and dollar strength. However, WTI crude futures found a floor around the $79/bbl level.
Spot gold languished below the $1,900/oz level, as the US dollar remained steadfast.
Copper futures were subdued but off their lows, amid the broad risk-averse mood.
Looking ahead, key economic data releases include the US IJC, Philadelphia Fed Business Index, Norges Policy Announcement, Supply from France, and earnings from Walmart.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Comments