_edited_edited.png)
Markets Update: Bond yields rose slightly and Asian stock markets stabilized as investors awaited key U.S. economic data to gauge potential interest rate cuts.
Economic Calendar
Global Markets Roundup: 3 September 2024
Bond yields rose slightly on Tuesday, while currencies and Asia's stock markets stabilized as investors awaited a slew of data to gauge the potential depth of U.S. interest rate cuts. Ten-year Treasury yields (US10Y) inched up to 3.919%, and two-year yields increased by a basis point to 3.935% as Asian trading resumed following a U.S. holiday. Positive spending data on Friday prompted markets to reduce the likelihood of a half-point rate cut by the Federal Reserve. The upcoming U.S. ISM manufacturing survey and jobs data on Friday will play a crucial role in the Fed's decision-making process.
The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) edged down by 0.1%. Japan's Nikkei (NI225) climbed 0.7%, while S&P 500 futures (ES1!) remained steady. The dollar and U.S. yields stabilized as attention shifted towards Friday. Raisah Rasid, a global market strategist at J.P. Morgan Asset Management in Singapore, emphasized the importance of Friday's data, suggesting that a cooling labor market is needed for rate cuts. Economists anticipate an improvement in the ISM survey to 47.5 in August but remaining in contractionary territory. Analysts are cautious about a weaker reading impacting the dollar negatively.
On Friday, job growth of 160,000 and a decrease in the unemployment rate to 4.2% are anticipated. The dollar stood at 146.85 yen (USDJPY) and traded at $1.1063 per euro (EURUSD) during the Asia session. The Australian dollar (AUDUSD) and New Zealand dollar (NZDUSD) paused their rallies, with the Aussie just below $0.68. In Hong Kong, New World Development shares (17) plummeted to a two-decade low after the company projected a $2.6 billion loss for the fiscal year ending in June. Woolworths shares (WOW) in Australia dropped by 3% following the supermarket operator's announcement of selling its remaining stake in a liquor shop chain (EDV).
Gold (GOLD) hovered around $2,494 per ounce after reaching a record high above $2,500 in August. Oil prices faced challenges amid demand concerns, despite tensions in the Middle East, with Brent crude futures (BRN1!) slipping by 0.5% to $77.13 per barrel. Copper futures dropped to approximately $4.12 per pound in early September due to increasing inventories and weak demand from China. Recently, copper inventories in LME warehouses surged by 8,700 tons amidst sluggish market conditions. RC2! November robusta coffee prices dropped by 5% to $4,700 per ton, continuing the decline from last week's peak of $5,180, the highest level in over 16 years. C2! December London cocoa closed slightly lower at 5,329 pounds per ton, as the outlook for Ivory Coast crops improved, keeping prices in check. The wheat contract with the highest trading activity on the Chicago Board of Trade (CBOT) ZW1! increased by 0.2% to $5.52-3/4 per bushel at 0058 GMT, following a 4.5% rise last week. Meanwhile, the CBOT corn ZC1! saw a slight decrease of 0.1% to $4.00-1/2 per bushel, and soybeans ZS1! also declined by 0.1% to $9.98-3/4 per bushel.
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