Global Markets:
- Asian Stock Markets : Nikkei down -0.25%, Shanghai Composite down 0.73%, Hang Seng down 1.51%, ASX down 0.35%
- Commodities : Gold at $1928.05 (-0.24%), Silver at $23.002 (-0.71%), Brent Oil at $75.77 (-0.61%), WTI Oil at $70.85 (+1.58%)
- Rates : US 10-year yield at 3.861, UK 10-year yield at 4.465, Germany 10-year yield at 2.4450
News & Data:
- (CNY) Caixin Services PMI 53.9 vs 56.2 expected
Markets Update:
Asian stock markets traded mostly lower on Wednesday, reacting negatively to the latest geopolitical tensions between the US and China. With a lack of cues from Wall Street overnight, traders were hesitant to make significant moves. Persistent concerns about global economic growth amid rising interest rates added to the cautious sentiment. On Tuesday, Asian markets closed with mixed results.
The Australian stock market experienced a modest decline of 0.35% on Wednesday, erasing some of the gains made in the previous three sessions. The benchmark S&P/ASX 200 hovered just below the 7,300 level, affected by the lack of cues from Wall Street. Losses in gold miners and financial stocks contributed to the overall downturn. However, it’s worth noting that Australian stocks showed notable gains on Tuesday.
In Japan, the Nikkei 225 index recorded a slight decline of 0.25% on Wednesday, extending losses from the previous session. The index remained just above the 33,300 level. Traders reacted to service activity data, which indicated the slowest growth in four months. According to a survey by Judo Bank, the services PMI score for June was 50.3, down from 52.1 in May, but still indicating expansion as it remained above the threshold of 50.
In the commodities market, gold experienced a decline of 0.24% while silver dropped by 0.71%. Conversely, Brent oil saw a decrease of 0.61% while WTI oil showed a notable increase of 1.58%. Traders are closely monitoring upcoming events, particularly the release of the US Federal Reserve’s meeting minutes and the highly anticipated monthly jobs data. These forthcoming developments are expected to have a significant impact on investor sentiment and market movements.
Upcoming Events:
- All Day – OPEC Meeting
- 6:00 PM GMT – USD FOMC Meeting Minutes
