Global Markets:
- Asian Stock Markets : Nikkei down 2.46%, Shanghai Composite up 0.07%, Hang Seng up 2.48% ASX up 0.88%
- Commodities : Gold at $2409.5 (-0.47%), Silver at $31.02 (-1.34%), Brent Oil at $85.93 (0.67%), WTI Oil at $83.21 (0.7%)
- Rates : US 10-year yield at 4.204, UK 10-year yield at 4.115, Germany 10-year yield at 2.488
News & Data:
- (USD) Core CPI m/m 0.1% vs 0.2% expected
- (USD) CPI m/m -0.1% vs 0.1% expected
- (USD) CPI y/y 3.0% vs 3.1% expected
- (USD) Unemployment Claims 222K vs 236K expected
Markets Update:
Asia-Pacific markets were mixed on Friday following U.S. inflation data for June, which came in at the lowest level in nearly three years, giving the Federal Reserve potential room to adjust interest rates. The U.S. consumer price index rose by 3% year-on-year, a slower increase compared to May’s 3.3%. Core inflation, excluding food and energy costs, increased by 0.1% monthly and 3.3% annually, compared to forecasts of 0.2% and 3.4%.
The yen strengthened against the dollar early Friday after the U.S. inflation data release, leading to speculation of possible intervention by Japan’s Ministry of Finance. The yen traded at 158.55 against the U.S. dollar around 12 a.m. Tokyo time but weakened later to 159.26. Japan’s top currency diplomat, Masato Kanda, stated that authorities would take necessary action in the foreign exchange market, noting recent rapid movements in the yen without confirming any intervention.
In the stock markets, Japan’s Nikkei 225 dropped 2.4%, leading losses in Asia after three days of new highs, while the Topix fell 1.1%. South Korea’s Kospi declined by 1.2%, and the small-cap Kosdaq slipped 0.3%. Conversely, Hong Kong’s Hang Seng index rose by 2.48%, although mainland China’s CSI 300 declined by 0.2%. China’s exports beat expectations, rising 8.6% year-on-year in June, but imports fell 2.3%, widening the trade surplus to $99.05 billion.
Elsewhere, Taiwan’s Weighted Index fell nearly 2%, with major companies Taiwan Semiconductor Manufacturing and Foxconn dropping over 3% and 4%, respectively. Australia’s S&P/ASX 200 rose by 0.8%, nearing its all-time high. In the U.S., the S&P 500 retreated from a record high, falling 0.88%, while the Nasdaq Composite dropped 1.95%, weighed down by a decline in Nvidia. The Dow Jones Industrial Average saw a modest increase of 0.08%.
Upcoming Events:
- 12:30 PM GMT – CAD Building Permits m/m
- 12:30 PM GMT – USD Core PPI m/m
- 12:30 PM GMT – USD PPI m/m
