02nd August 2022 Tuesday: Asian markets a flurry of red

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Global Markets:

  • Asian Stock Markets : Nikkei down 1.49%, Shanghai Composite down 2.86%, Hang Seng down 2.80%, ASX down 0.17%
  • Commodities : Gold at $1790.15 (+0.14%), Silver at $20.18 (-0.91%), Brent Oil at $99.26 (-0.77%), WTI Oil at $93.25 (-0.68%)
  • Rates : US 10-year yield at 2.552, UK 10-year yield at 1.807, Germany 10-year yield at 0.775

News & Data:

  • (AUD) Cash Rate 1.85% vs 1.85% expected
  • (USD) ISM Manufacturing PMI 52.8 vs 52.3 expected

Markets Update:

Asian stock markets are trading mostly lower on Tuesday, following the mildly negative cues from global markets overnight, amid sinking oil prices, concerns over slowing growth and the rising tension between China and the U.S over Taiwan visit by US House Speaker Nancy Pelosi. Lingering concerns about the outlook for the economy, inflation and interest rates also weighed on sentiment. 

The Japanese stock market is sharply lower on Tuesday, giving up all the gains in the previous session, with the Nikkei 225 falling below the 27,600 level, following the mildly negative cues from global markets overnight, with weakness in technology, financial and energy-linked shares. Hong Kong, China and Taiwan are plunging between 2.9 and 3.5 percent, while New Zealand, South Korea, Singapore Malaysia and Indonesia are lower by between 0.1 and 0.9 percent each. The Australian stock market is modestly lower on Tuesday, snapping the five-session winning streak, with the benchmark S&P/ASX 200 staying below the 7,000 mark, as traders await the Reserve Bank interest rate decision later in the day, with the RBA tipped to raise rates by another 50 basis points to a six-year high.

Crude oil prices fell sharply on Monday amid concerns about outlook for energy demand and ahead of this week’s OPEC+ meeting. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 105.289.

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