Global Market Update : On Thursday, investors sold after Fitch downgraded the U.S. debt. Asian stocks slowed. After the event, they watch the Bank of England’s rate decision and Apple and Amazon’s earnings releases.
S&P 500 and Nasdaq futures gained 0.2% despite Wall Street selling. The broadest MSCI Asia-Pacific stock index fell 0.2% in Asia from June to July, even though it rose 5.4%. The day prior, the index fell 2.3%. Japan’s Nikkei average fell 1.1%, erasing some of the month’s gains.
The Bank of Japan suspended yield curve control this week. Thus, 10-year Japanese government bond yields rose to 0.65%, their highest since April 2014. The greatest since April 2014. A private analysis indicated China’s services sector increased faster in July. Chinese blue chips rose, but Hong Kong’s Hang Seng index barely changed.
City Index market specialist Matt Simpson in Brisbane agreed that the Fitch rating had an effect and considered prospective swings and questions at current highs. He predicted brutal trade or a more significant decrease.
After a solid July with high earnings and promises of a soft landing for the U.S. economy, the Nasdaq and S&P 500 dropped the most since February and April, respectively. After July, both measures rose significantly. Apple’s second-quarter sales are likely to fall while Amazon.com Inc.’s rise.
The U.S. government refinanced debt, and the private job market improved, raising long-term yields and changing risk perceptions. Asia’s 10-year U.S. government bond interest rate was 4.0856%, somewhat lower than nine months earlier. The U.S. dollar touched 102.63, a one-month high, against its biggest rivals.
Today, the Bank of England may boost interest rates to 5.25%, the highest in 15 years. Emerging countries are poised to ease because the Federal Reserve Bank of Brazil decreased its benchmark interest rates.
Oil prices rose as traders considered bullish U.S. inventory data and the possibility that OPEC and its partners would continue curating supplies. Today, gold reached $1,936.19.
Recent economic events and uncertainty about major central banks have caused Asian markets to be cautious. Investors watch events that could impact global markets in the following days and weeks.