Global Markets:
- Asian Stock Markets : Nikkei up 1.12%, Shanghai Composite down 0.78%, Hang Seng down 1.27% ASX down 0.11%
- Commodities : Gold at $3346.35 (-0.09%), Silver at $37.18 (-1.09%), Brent Oil at $72.19 (-0.19%), WTI Oil at $69.8 (-0.13%)
- Rates : US 10-year yield at 4.353, UK 10-year yield at 4.602, Germany 10-year yield at 2.7050
News & Data:
- (USD) ADP Non-Farm Employment Change 104K to 77K expected
- (USD) Advance GDP q/q 3.0% to 2.5% expected
- (CAD) Overnight Rate 2.75% to 2.75% expected
- (USD) Federal Funds Rate 4.5% to 4.5% expected
Markets Update:
Asian markets are treading cautiously this Thursday, with most trading in the red. Investors are on edge ahead of the looming August 1 trade deadline set by U.S. President Donald Trump. His recent hints at imposing higher tariffs have only added to the anxiety. Meanwhile, Wall Street’s mixed signals overnight didn’t help soothe sentiment.
The U.S. Federal Reserve chose to keep interest rates unchanged, though the decision wasn’t unanimous. Fed Chair Jerome Powell clarified that a September rate cut isn’t ruled out—but no promises either. Markets are left to read between the lines.
In Australia, stocks are pulling back slightly after a strong three-day rally. Mining and energy shares are dragging the market down, with BHP, Rio Tinto, and Fortescue all dipping. Beach Energy nosedived over 10% after a weak production report and a hefty $674 million impairment warning. On a brighter note, tech stocks like Block and WiseTech are seeing small gains.
Japan, however, is bucking the trend. The Nikkei climbed past 41,000, snapping a losing streak thanks to strength in financial and tech stocks. Stronger-than-expected industrial output also lifted spirits.
Economic updates from both countries show resilience—retail sales and building approvals in Australia surprised positively, while Japan’s factory output and retail figures beat forecasts. But markets remain fragile as global uncertainties linger.
Upcoming Events:
- Tentative GMT – JPY BOJ Policy Rate
- 12:30 PM GMT – CAD GDP m/m
- 12:30 PM GMT – USD Employment Cost Index q/q
- 12:30 PM GMT – USD Unemployment Claims
