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Markets Update: Asian markets traded mixed, with Japan rising on reopening, while Chinese shares fell on weak economic data, offsetting Wall Street's gains fueled by Powell's comments on cooling inflation, as the dollar strengthened against most currencies.
Economic Calendar
Global Markets Roundup: 16 July 2024
Asia-Pacific shares dropped on Tuesday as investors weighed the implications of a potential Trump victory and its impact on China. Concurrently, the U.S. dollar strengthened for a second consecutive day, despite dovish comments from the Federal Reserve fueling expectations of further rate cuts this year.
The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) declined by 0.5%, following a 0.3% decrease on Monday. Japan, returning from a public holiday, saw its Nikkei index NI225 rise by 0.4%. China's Shanghai Composite Index (000001) decreased by 0.3%, while Hong Kong's Hang Seng Index HSI dropped by 1.4%, adding to the previous day's 1.5% fall. Weak economic data from China heightened concerns that Beijing might miss its 5% growth target for the year without significant stimulus.
Overnight, markets were still processing the attempted assassination of former U.S. President Donald Trump on Saturday. Trump, the frontrunner for the November presidential election, announced J.D. Vance as his vice-presidential running mate on Monday. Wall Street ended higher, with the Dow Jones achieving an all-time closing high, driven by gains in energy and banking stocks. Bitcoin surged by 6%, gold approached a record high, and the yield curve steepened as investors anticipated a Trump victory.
Adding to Wall Street's optimism, Federal Reserve Chair Jerome Powell noted on Monday that three inflation readings from the second quarter support confidence that inflation is returning to the Fed's target sustainably.
Despite the dovish tone from the Fed, the U.S. dollar attracted buying interest as some investors bet on a Trump victory. The dollar index DXY firmed by 0.1% on Tuesday against a basket of major currencies, reaching 104.34. The dollar gained 0.3% against the Japanese yen, trading at 158.55 yen per dollar USDJPY, following suspected market intervention by Tokyo last week. The euro EURUSDÂ was at $1.0893. The Aussie strengthened 0.2% to 106.98 yen AUDJPY. Sterling GBPUSD was little changed at $1.29625. The AUDUSDÂ was 0.27% lower at $0.6741, while the New Zealand dollar NZDUSDÂ eased 0.17% to $0.6064
In commodities and soft commodities, GOLD edged up by 0.2% to $2,426.18 an ounce, nearing a two-month high. Oil prices dipped amid concerns about slowing demand from China. Brent crude futures BRN1! fell by 0.2% to $84.72 a barrel, while U.S. West Texas Intermediate (WTI) crude CL1! also slipped by 0.2% to $81.77. LME copper HG1! lost 0.2% to $9,791 per metric ton.  September arabica coffee KC2! decreased by 2.7% to close at $2.4215 per lb. September New York cocoa CC2! ​​edged 3.3% higher to close at $8,595 a ton.
Looking ahead today, markets anticipate, ECB Bank Lending Survey, Italy and EU Balance of Trade, German ZEW Economic Sentiment Index, US Export and Import Prices, Canada Inflation Rate, API Crude Oil Stock Change.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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