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Markets Update: Asian stocks dipped on Wednesday as global markets paused their rally, while bond yields and the dollar weakened in anticipation of dovish U.S. economic data, policymaker speeches advocating for rate cuts, and a potential surge in gold prices.
Economic Calendar
Global Markets Roundup: 21 August 2024
Asian stocks declined on Wednesday as the strong recovery in global stocks took a pause, while bond yields and the dollar dropped in anticipation of U.S. economic data and speeches from policymakers advocating for interest rate cuts.v The S&P 500 SPX ended its eight-session winning streak with a 0.2% decrease. The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell by 0.5%. U.S ES1! and European futures FESX1! each inched up by around 0.2%. Hong Kong's Hang Seng HSI slid by 1%, with JD.com 89618 falling by 10% as major shareholder Walmart (WMD.N) moved to divest its significant stake. Japan's Nikkei NI225 dropped by 1% at the opening as it faced resistance near the 38,000 level following its plunge in early August. However, it recovered to trade 0.3% lower in the afternoon.
Later on Wednesday, preliminary revisions to U.S. labor data are set to be released, with expectations of a significant downward revision that could support the case for interest rate cuts. Federal Reserve minutes are also anticipated to reinforce a dovish stance. On Thursday, surveys on U.S. and global purchasing managers' indexes are scheduled.
The weakening dollar has propelled gold to record highs, pushing the yen USDJPYÂ to 145.67 per dollar, marking a 1.6% increase for the week and an 11% rise from last month's 38-year low. The euro EURUSD has surged by nearly 3% in August, reaching $1.1132 in Asian trading, its highest level since early December and testing crucial chart levels. Interest rate futures have priced in a 25 basis point (bps) U.S. rate cut next month, with a 1/3 probability of a 50 bps cut. Nearly 100 bps in cuts are projected for this year, along with an additional 100 bps for next year. (FEDWATCH) Federal Reserve Chair Jerome Powell is scheduled to speak at the Jackson Hole symposium in Wyoming on Friday. The Australian and New Zealand dollars maintained substantial recent gains, with the Aussie AUDUSDÂ at $0.6747 and the kiwi NZDUSDÂ at $0.6157.
Commodity prices stabilized, with Brent crude futures BRN1! at $77.12 per barrel and Dalian iron ore finding support following reports that China intends to enable local governments to purchase unsold homes as a measure to support the property market. China, being the largest steel consumer globally, triggers market sensitivity to any signs of construction resurgence. Shares of major miners BHPRIOFMG remained steady in Australia. GOLD hovered around $2,516 per ounce, slightly below the record levels reached on Tuesday. The price of raw sugar SB1!​ decreased by 0.45 cent, or 2.5%, closing at 17.57 cents per lb, marking the lowest point since October 2022.
Looking ahead later today, we have the FOMC minutes in focus.
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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