Global Markets:
- Asian Stock Markets : Nikkei down 1.27%, Shanghai Composite down 0.23%, Hang Seng down 0.83% ASX down 0.16%
- Commodities : Gold at $2417.35 (0.47%), Silver at $29.41 (0.64%), Brent Oil at $81.33 (0.37%), WTI Oil at $77.29 (0.41%)
- Rates : US 10-year yield at 4.245, UK 10-year yield at 4.125, Germany 10-year yield at 2.438
News & Data:
- (USD) Existing Home Sales 3.89M vs 3.99M expected
- (USD) Richmond Manufacturing Index -17 vs -7 expected
Markets Update:
On Wednesday, Asia-Pacific markets declined as traders assessed July business activity data from Japan and Australia, and tech earnings from the U.S. Tech and EV stocks in the region were hit hard after U.S. giants Alphabet and Tesla released their second-quarter earnings, with Tesla falling short of expectations. Hong Kong’s Hang Seng index fell 0.8%, reversing earlier gains, while mainland China’s CSI 300 slipped 0.1%. EV stocks like Nio and Li Auto dropped 4%, and Xpeng declined over 3%.
Japan’s Nikkei 225 dropped 1.2%, affected by utilities and real estate stocks, while the broader Topix fell 1.19%. Flash data from au Jibun Bank indicated that Japan’s business activity returned to growth, with the composite purchasing managers’ index for July rising to 52.6 from 49.7 in June, reflecting solid growth among private sector firms. Late Tuesday, Toyota announced a share buyback worth 806.85 billion yen ($5.17 billion) from major Japanese banks and insurers, including Tokio Marine, Mitsubishi UFJ Financial Group, and Sumitomo Mitsui Financial Group, boosting its shares by 0.13%.
South Korea’s Kospi fell 0.37%, while the small-cap Kosdaq rose 0.44%. Heavyweight Samsung Electronics plunged 1.91% amid a strike by its largest workers’ union, with recent talks yielding no results. Separately, Reuters reported that chip giant Nvidia approved Samsung chips for use in a processor for the China market.
Australia’s S&P/ASX 200 slipped 0.16% after the country’s private sector activity grew at a slower pace in July, with the composite purchasing managers’ index dropping to a six-month low of 50.2 from 50.7 in June, according to Juno Bank. In the U.S., the S&P 500 dipped 0.16%, the Nasdaq Composite edged down 0.06%, and the Dow Jones Industrial Average decreased by 0.14%.
Upcoming Events:
- 1:45 PM GMT – CAD BOC Rate Statement
- 1:45 PM GMT – CAD Overnight Rate
- 1:45 PM GMT – USD Flash Manufacturing PMI
- 1:45 PM GMT – USD Flash Services PMI
- 2:00 PM GMT – USD New Home Sales
- 2:30 PM GMT – CAD BOC Press Conference
- 2:30 PM GMT – USD Crude Oil Inventories
