Global Markets:
- Asian Stock Markets : Nikkei down 0.47%, Shanghai Composite up 1.79%, Hang Seng up 1.21%, ASX down 0.70%
- Commodities : Gold at $1949.80 (+0.23%), Silver at $24.35 (-0.01%), Brent Oil at $83.55 (-0.31%), WTI Oil at $79.92 (-0.25%)
- Rates : US 10-year yield at 3.021, UK 10-year yield at 4.358, Germany 10-year yield at 2.524
News & Data:
- (USD) Advance GDP q/q 2.4% vs 1.8% expected
- (USD) Unemployment Claims 221K vs 224K expected
- (USD) Pending Home Sales m/m 0.3% vs -0.5% expected
Markets Update:
In the Asian market, Japan’s Nikkei 225 slid as much as 2.4% on Friday following the Bank of Japan’s adjustment to its yield curve control policy. As expected, the Bank of Japan maintained its benchmark policy rate at -0.1%, in line with economists’ forecasts from a Reuters poll. The benchmark index concluded the day with a 0.4% decline, settling at 32,759.23, while the Topix experienced a smaller loss of 0.2%, closing at 2,290.61.
Japan’s central bank clarified that it will allow 10-year government bond yields to fluctuate within the range of approximately plus and minus 0.5%. However, it introduced greater flexibility in its yield curve control, considering the upper and lower bounds as references rather than strict limits during its market operations.
In Australia, the S&P/ASX 200 fell by 0.7% to close at 7,403.6 due to disappointing retail sales figures. Retail sales in June dropped by 0.8% year on year, falling short of expectations from a Reuters poll that had predicted sales to remain unchanged from the previous year.
In other markets, South Korea’s Kospi closed higher by 0.17% at 2,608.32, and the Kosdaq surged by 3.39% to end at 913.74. Hong Kong’s Hang Seng index climbed 1.21%, while the Shanghai Composite and Shenzhen Component gained 1.79% and 1.56%, respectively. However, in the United States, all three major indexes experienced declines, with the Dow Jones Industrial Average losing 0.67%, snapping its 13-day winning streak. The Nasdaq Composite also shed 0.55%, and the S&P 500 dropped 0.64% on the same day.
Upcoming Events:
- 12:30 PM GMT – CAD GDP m/m
- 12:30 PM GMT – USD Core PCE Price Index m/m
- 12:30 PM GMT – USD Employment Cost Index q/q
- 2:00 PM GMT – USD Revised UoM Consumer Sentiment
