The daily reports for important events that affects the forex, stocks and commodities markets.

05/09/2024 Daily Reports

Asian Markets Mixed Amid Global Sell-Off and Rate Hike Speculation

Asian markets were mixed on Thursday following a global sell-off, with Wall Street’s tech and energy sectors pulling back. Japan’s benchmark Nikkei 225 fell 0.9% to 36,700.19, as wage growth data beat expectations, signaling a possible rate hike. Average cash earnings in Japan grew 3.6% year-on-year in July, while real earnings unexpectedly increased by 0.4%, strengthening the yen against the U.S. dollar, which traded at 143.81 yen.

Australia’s S&P/ASX 200 added 0.1%, while U.S. futures pointed lower. Oil prices saw a modest rise, with U.S. crude gaining 14 cents to $69.34 a barrel, and Brent crude up 12 cents to $72.82.

On Wall Street, the S&P 500 fell 0.2%, the Nasdaq lost 0.3%, while the Dow Jones Industrial Average managed a 0.1% gain. U.S. Treasury yields were little changed, with the 10-year yield at 3.76%, down from 3.83% earlier. Investors are closely watching upcoming U.S. jobs data and the Institute for Supply Management’s services sector report for clues on the Federal Reserve’s next moves.

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Markets paused after a selloff earlier in the week, as concerns about the U.S. economy resurfaced and investors focused on upcoming job reports. Wednesday’s labor data indicated a weakening jobs market, raising expectations for significant Federal Reserve interest rate cuts. Asian shares rebounded slightly on Thursday, though overall sentiment remained fragile, with European markets expected to open subdued. The yen held its weekly gains as traders sought safe-haven assets, and the dollar steadied after a dip.

Attention is now on Thursday’s U.S. jobless claims and euro zone retail sales data, leading up to Friday’s key U.S. non-farm payrolls report. Markets are speculating whether the Fed will cut rates by 25 or 50 basis points at its upcoming meeting, with a 44% chance now placed on the larger cut. Investors are pricing in 110 basis points of total cuts by year-end, keeping economic data under close watch.

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