Global Markets:
- Asian Stock Markets : Nikkei down -1.17%, Shanghai Composite down 0.25%, Hang Seng down 1.01%, ASX down 1.69%
- Commodities : Gold at $1918.05 (+0.19%), Silver at $22.83 (-0.25%), Brent Oil at $76.80 (+0.37%), WTI Oil at $72.06 (+0.36%)
- Rates : US 10-year yield at 4.028, UK 10-year yield at 4.699, Germany 10-year yield at 2.605
News & Data:
- (USD) ADP Non-farm employment change 497K vs 226K expected
- (USD) Unemployment Claims 248K vs 247K expected
- (USD) ISM Services PMI 53.9 vs 51.3 expected
- (USD) JOLTS job opening 9,82M vs 9,93M expected
Markets Update:
Markets in the Asia-Pacific region experienced a second day of declines following a sell-off on Wall Street, triggered by stronger-than-expected U.S. jobs data. The robust report on job creation by payroll processing firm ADP exceeded expectations, with the private sector adding a remarkable 497,000 jobs in the month. This surge, the largest monthly increase since July 2022, has raised concerns about potential rate hikes by the Federal Reserve.
In the Asian markets, Hong Kong’s Hang Seng index experienced a decline of 1.01%, with the Hang Seng Tech index dropping nearly 2%. Mainland China’s Shanghai Composite fell by 0.25%, while the Shenzhen Component saw a decrease of 0.55%. Japan’s Nikkei 225 declined by 1.17%, and the Topix shed 1.1%. South Korea’s Kospi also slid, losing 1.14%, as Samsung Electronics estimated a significant 96% plunge in its second-quarter operating profit.
Moving to Australia, the S&P/ASX 200 index suffered a significant decline of 1.69%, leading the losses in the region. This downward trend reflects the broader concerns surrounding the strong U.S. jobs data and the potential impact of the Federal Reserve’s rate hike decisions.
In the commodities market, crude oil futures settled nearly unchanged on Thursday as traders considered the impact of higher interest rates on growth and energy demand, alongside a decline in crude inventories. West Texas Intermediate (WTI) Crude oil futures for August settled at $71.80 per barrel, up by a penny from the previous close. Gold prices saw a modest increase, with gold trading at $1918.05 (+0.19%), while silver prices slightly dipped to $22.83 (-0.25%).
Upcoming Events:
- 12:30 PM GMT – CAD Employment Change
- 12:30 PM GMT – CAD Unemployment Rate
- 12:30 PM GMT – USD Average Hourly Earnings m/m
- 12:30 PM GMT – USD Non-Farm Employment Change
- 12:30 PM GMT – USD Unemployment Rate
- 4:45 PM GMT – EUR ECB President Lagarde Speaks
