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Markets Update: Traders are still discussing the likelihood of a 50 bps or 25 bps cut by the Fed. Strong U.S. retail sales briefly leaned towards a 25 bps cut. The dollar decreases against the yen, but 2-year Treasury yields slightly increase. Most Asian stocks are under pressure, with the Nikkei following the fluctuations of the yen.
Economic Calendar
Global Markets Roundup: 25 September 2024
SPX | CL1! | GOLD | FESX1! | SXXP | HSI | NI225 | EURUSD | AUDUSD | USDJPY | NZDUSD | DXY| ZW1! | KC1!
Chinese stocks saw a significant increase on Wednesday, which boosted regional markets and contributed to a global rally driven by stimulus measures. This rally also supported risk-sensitive currencies, while Brent crude remained close to a three-week high. The weakening dollar was a result of poor U.S. macroeconomic data, strengthening the case for a substantial interest rate cut at the Federal Reserve's upcoming meeting. Gold prices reached a new all-time high.
Mainland Chinese blue-chip stocks rose by 3.1% by 0230 GMT, following a 4.3% surge in the previous session. Hong Kong's Hang Seng index climbed 2.2%, adding to the 4.1% increase from Tuesday. The positive performance of Chinese stocks had a ripple effect on other regional indexes, with Taiwan's benchmark TWSE:TAIEX up by 1.3% and South Korea's Kospi gaining 0.1%. The broader MSCI index of Asia-Pacific shares outside Japan rallied by 1%. Japan's Nikkei index overcame early weakness to rise by 0.3%, aided by a decline in the yen, a traditional safe-haven currency. FESX1! | SXXP | HSI | NI225
The People's Bank of China reduced medium-term lending rates to banks following a wide-ranging policy easing announcement on Tuesday. China's comprehensive stimulus package, the largest since the pandemic, includes measures to support the stock market and the struggling property sector. UBS analysts highlighted that the focus in Asia remains on China, with investors leaning towards buying or covering shorts before assessing the situation further. The yen weakened by about 0.17% to 143.47 per dollar, reversing earlier gains amid a general decline in the dollar.
In the currency markets, the euro rose to $1.11915, while sterling edged up to $1.3417, reaching a new high since March 2022 at $1.3430. Data revealed a surprise drop in U.S. consumer confidence, leading to increased expectations of a 50-basis point rate cut by the Federal Reserve in November. Australia's dollar initially reached its highest level since February of the previous year but retreated after inflation figures showed signs of cooling, potentially prompting an earlier rate cut by the Reserve Bank. EURUSDÂ | AUDUSDÂ | USDJPY
Gold prices rose by 0.2% to $2,662.50 per ounce, hitting a new record peak at $2,665.10. Brent crude futures slipped to $74.98 a barrel, remaining close to the recent high, while U.S. West Texas Intermediate crude lost ground to $71.34 per barrel. CL1! | GOLDÂ
In the upcoming trading sessions, key events to note are the US Building Permits, policy announcements from Riksbank and CNB, speeches by BoE’s Greene, Riksbank's Thedeen, and Fed's Kugler, as well as the supply from the UK, Italy, Germany, and the US.
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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