Global Markets:
- Asian Stock Markets : Nikkei up 0.01%, Shanghai Composite up 0.47%, Hang Seng up 0.85% ASX down -1.04%
- Commodities : Gold at $3,800.92 (-0.36%), Silver at $44.405 (-0.46%), Brent Oil at $67.65 (0.03%), WTI Oil at $63.47 (0.09%)
- Rates : US 10-year yield at 4.106, UK 10-year yield at 4.6860, Germany 10-year yield at 2.7520
News & Data:
- (USD) Flash Manufacturing PMI 52.0 to 52.2 expected
- (USD) Flash Services PMI 53.9 to 54.0 expected
Markets Update:
Asian stock markets are mostly lower on Wednesday, tracking the negative cues from Wall Street amid uncertainty over U.S. interest rate policy. Fed Chair Jerome Powell offered little clarity on the path of rates, while renewed U.S. trade tensions and escalating geopolitical risks in Europe and the Middle East further dampened sentiment. On Tuesday, Asian markets had ended mixed.
Powell described equity valuations as “fairly highly valued,” noting the Fed faces a “challenging situation” balancing inflation risks with employment concerns. Fed Governor Stephen Miran again urged deeper cuts, having earlier supported a 50-basis-point move, while Fed officials Alberto Musalem and Beth Hammack called for caution. Markets still expect two more cuts this year, with CME’s FedWatch Tool showing a 94% chance of a quarter-point reduction at the October meeting.
In Australia, the S&P/ASX 200 fell 0.95% to 8,762, dragged by tech, financials, and gold miners, though iron ore and energy stocks offered some support. Japan’s Nikkei 225 slipped to 45,300, with mixed sector moves: SoftBank gained, while Fast Retailing and major automakers declined. PMI data showed manufacturing remained in contraction, slipping to 48.4.
Elsewhere, South Korea, Taiwan, and Singapore traded lower, while Hong Kong and Indonesia gained. On Wall Street, the Nasdaq dropped 1%, the S&P 500 fell 0.6%, and the Dow dipped 0.2%. Crude oil jumped over 2% on supply concerns.
Upcoming Events:
- 02:00 PM GMT – USD New Home Sales
- 02:30 PM GMT – USD Crude Oil Inventories
