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Wall Street rallied on the soft PPI reading in the last session and the sentiment is shared in the Asian equity markets on Wednesday.
Market Review | August 14, 2024
Market Review | August 14, 2024
Market Review | August 14, 2024
Market Review | August 14, 2024
The yen weakened for the second consecutive day, while the U.S. dollar softened as markets awaited U.S. inflation data. The July U.S. Producer Price Index (PPI) rose less than expected, indicating continued easing inflation and leading to dollar weakness. Despite recent volatility caused by the yen's sharp rise, the dollar's drop to $146.98 against the yen suggests the market may have stabilized.
The U.S. PPI rose 2.2% year-on-year in July, lower than expected and a sharp drop from the previous value of 2.7%. Since then, traders have increased their bets on the Fed to ease policy. The decline in the U.S. PPI data is bound to affect the timing of the introduction of interest rate cuts, which is bearish for the U.S. economy and the U.S. dollar in the short term, but bullish for the U.S. dollar in the medium term.
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In the Middle East, many parties believe that Iran's attack on Israel is imminent. Foreign media quoted US and Israeli officials as saying that Iran has deployed measures similar to the attack on Israel in April, but the exact time of the attack is unknown. The tension in the Middle East has pushed up the prices of gold and crude oil.
the U.S. economy and stock market are facing a series of challenges, including inflation pressure, a slowdown in consumer spending, and uncertainty about the future economic outlook. Investors and analysts are closely watching the release of economic data and corporate earnings reports to determine whether American families face greater economic pressure. At the same time, market volatility and concerns about the future economic outlook will continue to affect investors' decisions. In such a con
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Gold prices experienced their largest gain in three weeks, driven by escalating tensions in the Middle East and the easing of the U.S. dollar as markets await the crucial CPI reading due on Wednesday. Gold has surged to an all-time high above $2,460, as uncertainties surrounding developments in both the Middle East and Eastern Europe persist push the demand for safe-haven assets higher.
Global markets are navigating through significant shifts. China intervenes in the bond market to curb speculation, while Japan's Nikkei rebounds after historic losses. Elon Musk's increasing political involvement and General Motors' strategic shifts in China reflect broader economic and geopolitical trends. Rising tensions in the Middle East and U.S. labor market volatility add further complexity, influencing global currencies and stock movements.
On Monday (August 12th), the US dollar index fluctuated above the 103 level, ultimately falling slightly by 0.031% to 103.13
Market Review | August 13, 2024
Market Review | August 13, 2024
Gold prices surged over 1% in the North American market on Monday, driven by declining U.S. government bond yields and escalating tensions in the Middle East. The 10-year Treasury yield fell to 3.902% ahead of key U.S. inflation data. With Middle East crisis intensifying, demand for gold as a safe-haven investment has increased, especially amid warnings from Western countries to Iran and its allies. Gold typically performs well during geopolitical instability and periods of low interest rate.
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The market turmoil caused by the Bank of Japan's policy adjustments is still to be watched, and investors are already looking for new opportunities, closely monitoring the upcoming U.S. CPI report. This report may affect the Federal Reserve's interest rate decisions and trigger market fluctuations. Despite uncertainties, investments in the technology sector and market adjustments provide opportunities for investors seeking value. The emphasis of Federal Reserve officials on labor market data and