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Markets Update: Asian stocks continued to rise on Thursday, defying the global trend, fueled by optimism over China's stimulus measures, while the dollar regained strength and commodities market remained stable.
Economic Calendar
Global Markets Roundup: 19 September 2024
NI225 | HSI | ES1! | FESX1! | USDJPY | EURUSD | DXY | USDCHF | WTI CL1! | GOLD | ZC1! | CC2! | NVDA
Asian stocks defied the worldwide trend by continuing to rise on Thursday, driven by ongoing optimism regarding China's robust stimulus measures. However, there were indications that some of this enthusiasm was beginning to wane. Despite Wall Street ending lower the previous night and global stock indexes surrendering their earlier gains for the week, equities in Asia remained predominantly positive.
Despite that, MSCI's most comprehensive index of Asia-Pacific stocks excluding Japan (.MIAPJ0000PUS) increased by more than 1% to reach a level not seen in over two years on Thursday. The Nikkei index in Japan NI225Â also experienced a notable surge of 2.4%. Similarly, Hong Kong's Hang Seng Index HSIÂ rose by 1.5%, while China's CSI300 blue-chip index 3399300Â reversed its early losses to end trading 0.3% higher. NI225Â HSI 3399300
Furthermore, Bloomberg News reported on Thursday that China is contemplating injecting as much as 1 trillion yuan ($142.39 billion) of capital into its major state banks to enhance their ability to bolster the struggling economy. Across the broader market, investors shifted their focus to a series of speeches from Federal Reserve policymakers scheduled for later in the day, including comments from Chair Jerome Powell, which could offer more insights into the U.S. rate outlook. Additionally, the release of the core personal consumption expenditures (PCE) price index - the Fed's preferred gauge of inflation - is expected on Friday. Currently, markets are pricing in a roughly 62% probability of a 50bp cut at the Fed's November policy meeting and anticipate a total of 77bps in cuts by the year's end. Changes in expectations regarding the Fed's aggressiveness in lowering rates this year and next have, in turn, kept the dollar trading within a relatively narrow range over the past month.
The dollar regained strength on Thursday, following a decline earlier in the week as China's various supportive measures bolstered risk appetite and led traders to invest in China-related assets like the Australian and New Zealand dollars. Analysts noted that the greenback also received additional support from month-end flows. The Australian Dollar AUDUSD, increased by 0.18% to reach $0.6835, while the New Zealand dollar NZDUSD, decreased by 0.06% to $0.6257. Compared to the US dollar, the euro (EURUSD) and the British pound (GBPUSD) both retreated from their recent highs, trading at $1.1137 and $1.3324, respectively. The offshore Chinese yuan, identified as USDCNH, slightly rose by 0.06% to 7.0277 against the dollar, briefly surpassing the significant psychological threshold of 7 in the prior session. AUDUSD Â NZDUSD EURUSD GBPUSD USDCNH
In the commodities market, Brent crude futures BRN1! increased by 0.27% to reach $73.66 per barrel, while U.S. crude CL1! saw a 0.2% rise to $69.82 per barrel. The price of GOLD remained stable at $2,659.56 per ounce after reaching a new peak on Wednesday.
The primary wheat contract on the Chicago Board of Trade (CBOT) ZW1! rose by 0.5% to reach $5.92 per bushel. It had previously peaked at $5.93 during the session, marking its highest level since September 16. Soybeans ZS1! also increased by 0.2% to $10.55 per bushel, whereas corn ZC1! fell by 0.1% to $4.15 per bushel. ZW1! ZS1! ZC1!
December arabica coffee KC1! increased by 1.3 cents, or 0.5%, to $2.691 per lb, reaching a 13-year peak of $2.7120 earlier in the day. Traders noted that dry conditions in Brazil continued to be a significant factor. November robusta coffee RC1! saw a 2.5% rise to $5,446 a ton. December New York cocoa CC1! settled at $7,955 a ton, up $88, or 1.1%. However, traders mentioned that favorable weather in the primary producer, Ivory Coast, was enhancing the main crop forecast and could help to stabilize prices. March London cocoa C2! increased by 0.2% to 4,534 pounds per ton. KC1! RC1! CC1! C2!
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team