Global Markets:
- Asian Stock Markets : Nikkei down 0.09%, Shanghai Composite up 0.04%, Hang Seng up 0.30%, ASX up 0.78%
- Commodities : Gold at $1960.75 (-0.16%), Silver at $24.983 (+0.12%), Brent Oil at $81.22 (-0.18%), WTI Oil at $76.81 (-0.12%)
- Rates : US 10-year yield at 3.790, UK 10-year yield at 4.497, Germany 10-year yield at 2.467
News & Data:
- (USD) Core CPI m/m 0.1% vs 0.2% expected
- (USD) PPI m/m 0.1% vs 0.2% expected
- (USD) Unemployment Claims 237K vs 251K expected
Markets Update:
Asia-Pacific markets experienced widespread gains on Thursday as the U.S. inflation rate for June fell below expectations at 3%, marking the smallest year-over-year increase in two years. Economists polled by Dow Jones had anticipated a rate of 3.1%. Furthermore, both the month-over-month inflation rate and the core Consumer Price Index (CPI), which excludes volatile food and energy prices, rose less than forecasted.
Hong Kong’s Hang Seng index led the region’s gains with a surge of 2.53%, while the Hang Seng Tech index soared over 3%. Mainland Chinese markets also saw positive movement, with the Shanghai Composite rising by 1.29% and the Shenzhen Component experiencing a larger gain of 1.63%. However, China’s June trade data came in below expectations, indicating the largest decline in exports in over three years.
In South Korea, the Kospi index rose by 0.81% and the Kosdaq saw a gain of 1.33% following the Bank of Korea’s decision to hold its key policy rate unchanged at 3.5%, aligning with expectations. Australia’s S&P/ASX 200 continued its winning streak, closing at 7,246.9 with a gain of 1.56% over three consecutive days. In Japan, the Nikkei 225 climbed by 1.49% to reach 32,419, while the Topix index registered a 0.97% increase, closing at 2,242.99.
Overall, Asia-Pacific markets displayed significant gains as the U.S. inflation rate for June came in below expectations. While China’s trade data fell short of expectations, the positive market performance was driven by the news of lower inflation rates, providing a boost to investor sentiment.
Upcoming Events:
- 12:30 PM GMT – CAD Manufacturing Sales m/m
- 12:30 PM GMT – USD Import Prices m/m
- 02:00 PM GMT – USD Prelim UoM Consumer Sentiment
- 02:00 PM GMT – USD Prelim UoM Inflation Expectations
