Thursday 30th July : Asian markets lower even as positive sentiment on Wall Street

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Global Markets:

Asian Stock Markets : Nikkei down 0.26%, Shanghai Composite down 0.23%, Hang Seng down 0.73%, ASX up 0.74%

Commodities : Gold at $1947.60 (-0.30%), Silver at $23.33 (-4.07%), Brent Oil at $43.80 (-0.66%), WTI Oil at $40.92 (-0.85%)

Rates : US 10-year yield at 0.566, UK 10-year yield at 0.099, Germany 10-year yield at -0.517‌

News & Data:

(CHF) KOF Economic Barometer 85.7 vs 72.5 expected

(USD) Federal Funds Rate <0.25% vs <0.25% expected

(USD) Crude Oil Inventories -10.6M vs 1.0M expected

(USD) Pending Home Sales m/m 16.60% vs 15.60% expected
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Markets Update:

Asian stock markets are lower on Thursday despite the overnight gains on Wall Street after the Federal Reserve left interest rates at near-zero levels and reiterated its commitment to use its full range of tools to support the U.S. economy amid the coronavirus pandemic. Meanwhile, the relentless surge in coronavirus cases across the world dampened investor sentiment. According to data from Johns Hopkins University, the death toll in the U.S. from the pandemic has crossed 150,000.

In Japan, the Nikkei 225 shed 0.3% in afternoon trade while the Topix index dipped 0.6%. Mainland Chinese stocks were mixed by the afternoon, with the Shanghai composite lower by 0.2% while the Shenzhen component shed 0.4%. Hong Kong’s Hang Seng index shed 0.7%. Over in Australia, the S&P/ASX 200 bucked the trend, gaining 0.7%.

The dollar has been tumbling on expectations the Fed will continue its ultra loose monetary policy for years to come and on speculation it will allow inflation to run higher than it has previously indicated before raising interest rates. In commodity markets, oil prices were weighed down by concerns that surging coronavirus infections around the globe could jeopardise a recovery in fuel demand.

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