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Markets Update: Updates on China's real estate index. Australian dollar surges following jobs data release. Upcoming news on TSMC's results and ECB decision.
Global Markets Roundup: 17 October 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Asian stocks surrendered their initial advances on Thursday due to disappointment among investors over a housing policy briefing in China, while the dollar remained close to its highest level in 2-1/2 months on the potential of a Donald Trump presidency. Global bonds were steady after a significant drop in British inflation and in anticipation of the European Central Bank's first consecutive rate cut in 13 years. Attention will be on the performance of chipmaking giant TSMC (2330) following a weak outlook from equipment supplier ASML (ASML) that negatively impacted chip stocks. Japan's Nikkei (NI225) declined by 0.6%, and declining property shares in China erased the earlier gains in the broader market. The Shanghai Composite (000001) remained unchanged, while Hong Kong's Hang Seng trimmed a 2% increase to trade 0.6% higher. China's CSI300 real estate index (000952) dropped by 5%, giving up gains from the past two days. China's housing minister pledged to enhance builders' access to funding for completing numerous projects, and the central bank's deputy governor mentioned that reductions in down payments had already boosted confidence and sales. Shares in Australia, represented by XJO, declined slightly after reaching a record high, mainly due to a drop in mining stocks and falling iron ore prices in Singapore (SZZFX4). Futures for U.S. equities, symbolized by ES1!, showed a slight decrease after major indexes closed at or close to record levels on Wednesday. FESX1! | Z1! | NI225 | NQ1! | ES1!
In the foreign exchange markets, the dollar has strengthened due to an increase in Republican Donald Trump's chances in the prediction markets for the U.S. presidential election. The euro EURUSD is currently valued at $1.0862, hovering near its lowest point since early August. The yen is trading at 149.40 per dollar USDJPY. Following strong employment data surpassing expectations, the Australian dollar AUDUSD rebounded from a one-month low in Asia, reducing expectations for interest rate cuts. Recent data on Wednesday revealed a significant slowdown in British inflation to 1.7% annually, leading to speculations that the Bank of England might implement two rate cuts before Christmas. Markets are now pricing in a nearly 90% probability of two 25-basis-point rate cuts by the end of the year. Consequently, the pound GBPUSD dropped by 0.6% to its lowest level since August 20, while gilt and global bond yields declined as well. EURUSDÂ | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, Gold was priced at $2,677 per ounce, close to its all-time high, while Brent crude futures increased by 0.2% to $74.39 per barrel. U.S. West Texas Intermediate crude futures also rose to $70.58 per barrel, up by 0.3%. In soft commodities, December arabica coffee prices KC1! rose by 1.3 cents, or 0.5%, to reach $2.58 per lb as traders continued to evaluate the impact of recent rainfall on the 2025 crop outlook in Brazil. Meanwhile, March London cocoa C2! closed 35 pounds lower, or 0.7%, at 5,186 pounds per metric ton, following a peak of 5,481 pounds in the past month. Additionally, March raw sugar SB1! dropped by 0.82 cents, or 3.6%, to settle at 22.00 cents per lb, moving closer to last week's low of 21.77 cents. The primary corn contract on the Chicago Board of Trade ZC1! decreased by 0.2% to $4.04 per bushel, while CBOT soybeans ZS1! were down by 0.3% at $9.77 per bushel, and wheat ZW1! dipped by 0.1% to $5.84-1/2 per bushel. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team