Global Markets:
- Asian Stock Markets : Nikkei down 0.01%, Shanghai Composite down 0.38%, Hang Seng down 1.3% ASX down 0.46%
- Commodities : Gold at $2434.35 (0.37%), Silver at $28.18 (0.65%), Brent Oil at $78.63 (0.57%), WTI Oil at $75.49 (-0.48%)
- Rates : US 10-year yield at 4.182, UK 10-year yield at 4.053, Germany 10-year yield at 2.356
News & Data:
- (JPY) Unemployment Rate 2.5% vs 2.6% expected
Markets Update:
Asia-Pacific markets fell on Tuesday as the Bank of Japan commenced its two-day monetary policy meeting. Economists polled by Reuters expect the BOJ to raise its benchmark interest rate to 0.1%, up from the current range of 0% to 0.1%, and to reduce its Japanese government bond purchases. Japan’s Nikkei 225 dropped 0.7%, while the Topix was down 0.65%. Additionally, Japan’s unemployment rate for July was slightly lower than expected, at 2.5% compared to the forecasted 2.6%.
Elsewhere in the region, South Korea’s Kospi declined by 0.9%, and the small-cap Kosdaq saw a smaller loss of 0.7%. Australia’s S&P/ASX 200 fell by 0.46%, with heavyweight miner Fortescue plummeting by as much as 9.23%. This drop followed a report from the Australian Financial Review that JPMorgan’s equity capital markets team was looking for buyers for 1.9 billion Australian dollars ($1.2 billion) of discounted Fortescue stock on behalf of an undisclosed institutional investor.
Hong Kong’s Hang Seng index decreased by 1.3%, while mainland China’s CSI 300 slipped marginally, extending its losses after closing at its lowest level in nearly six months on Monday. These declines were part of a broader trend of market caution as investors awaited the outcomes of key central bank meetings and economic data releases.
In the United States, the major indexes ended mixed. The S&P 500 saw a marginal increase of 0.08% as Wall Street geared up for a busy week of corporate earnings and looked ahead to a significant policy announcement from the U.S. central bank. Economists do not expect the Federal Reserve to change the federal funds rate during this meeting, but traders are looking for hints of a possible rate cut in September. The Nasdaq Composite advanced by 0.07%, while the Dow Jones Industrial Average dipped by 0.12%.
Upcoming Events:
- 12:15 PM GMT – USD ADP Non-Farm Employment Change
- 12:30 PM GMT – CAD GDP m/m
- 12:30 PM GMT – USD Employment Cost Index q/q
- 6:00 PM GMT – USD FOMC Meeting Minutes
- 6:00 PM GMT – USD Federal Funds Rate
