Global Markets:
- Asian Stock Markets : Nikkei up 0.36%, Shanghai Composite up 0.04%, Hang Seng down 0.59% ASX down 0.27%
- Commodities : Gold at $2323.5 (0.27%), Silver at $29.48 (0.11%), Brent Oil at $82.53 (-0.39%), WTI Oil at $78.11 (-0.39%)
- Rates : US 10-year yield at 4.25, UK 10-year yield at 4.16, Germany 10-year yield at 2.46
News & Data:
- (USD) Core PPI m/m 0.0% vs 0.3% expected
- (USD) PPI m/m -0.2% vs 0.1% expected
- (USD) Unemployment Claims 242K vs 225K expected
Markets Update:
Asia-Pacific markets were mixed after the Bank of Japan (BOJ) kept its benchmark interest rate unchanged on Friday but indicated it might reduce its purchase of Japanese government bonds. The BOJ maintained short-term rates at between 0% to 0.1% as expected, and signaled a possible reduction in bond purchases following the next monetary policy meeting on July 30 and 31. Currently, the BOJ aims to buy about 6 trillion yen ($38.5 billion) in bonds each month, with plans to purchase between 4.8 trillion yen and 7 trillion yen per month.
In response to the BOJ’s decision, Japan’s Nikkei 225 reversed losses to gain 0.3%, while the Topix increased by 0.78%. South Korea’s Kospi rose by 0.32%, although the smaller cap Kosdaq fell by 1.14%. Australia’s S&P/ASX 200 declined by 0.27%, while Hong Kong’s Hang Seng index decreased by 0.6%, and the CSI 300 in mainland China slipped by 0.4%.
In the U.S., the S&P 500 rose to a fourth consecutive record close as investors considered new data indicating that inflation pressures might be easing. The broad market index gained 0.23% to finish at 5,433.74, while the Nasdaq Composite advanced 0.34% to close at 17,667.56, marking the fourth straight record closing for both indexes. However, the Dow Jones Industrial Average underperformed, dropping by 0.17%.
The record highs for the S&P 500 and Nasdaq this week were bolstered by fresh data showing signs of cooling inflation pressures.
Upcoming Events:
- 12:30 PM GMT – CAD Manufacturing Sales m/m
- 12:30 PM GMT – CAD Wholesale Sales m/m
- 12:30 PM GMT – USD Import Prices m/m
- 2:00 PM GMT – USD Prelim UoM Consumer Sentiment
- 2:00 PM GMT – USD Prelim UoM Inflation Expectations
