WORLD NEWS
Asian Markets Decline Amidst Focus on US Inflation Data and Fed Decision
Asian markets experienced mixed results on Tuesday as investors awaited the Federal Reserve’s policy decision and US inflation data, while the euro struggled to rebound from political uncertainty in Europe.
While all three main indexes on Wall Street advanced on Monday, with the S&P 500 and Nasdaq hitting new records, Asian investors were more cautious on Tuesday following a subdued performance the previous day due to thin trading volumes during the extended weekend break.
Hong Kong, Shanghai, and Sydney saw declines after the holiday break, while Singapore, Taipei, Manila, and Jakarta also faced losses. However, Tokyo, Seoul, Bangkok, and Mumbai saw modest gains.
Chinese authorities’ calls to reduce housing stockpiles to bolster the indebted property sector had little impact on traders. Additionally, a Hong Kong court’s order for the liquidation of Chinese developer Dexin added to market jitters.
The euro remained weak amid escalating political uncertainty after French President Emmanuel Macron announced a snap parliamentary election in response to gains by far-right parties in EU elections. This trend was echoed in other European countries like Spain, Germany, the Netherlands, Italy, and Austria.
European stock markets rebounded after Monday’s declines, with London, Paris, and Frankfurt posting gains.
Oil prices retreated after a recent rally, with traders awaiting an OPEC report on demand forecasts. This followed a drop in oil prices triggered by OPEC’s decision to reverse recent production cuts. However, OPEC officials reassured markets that they remained flexible in their approach.
The release of May’s consumer price index data and the conclusion of the Federal Reserve’s policy meeting on Wednesday are now in focus. Investors are particularly interested in the Fed’s “dot plot” forecast for interest rates in the coming months.
Key figures from the markets include:
– Tokyo’s Nikkei 225 index rose 0.3 percent to 39,134.79.
– Hong Kong’s Hang Seng Index fell 1.0 percent to 18,176.34.
– Shanghai’s Composite index dropped 0.8 percent to 3,028.05.
– London’s FTSE 100 index climbed 0.2 percent to 8,243.36.
In currency markets:
– Euro/dollar was slightly down at $1.0766.
– Euro/pound rose to 84.65 pence.
– Dollar/yen increased to 157.34 yen.
– Pound/dollar declined to $1.2718.
In oil markets:
– West Texas Intermediate fell 0.1 percent to $77.69 per barrel.
– Brent North Sea Crude dipped 0.1 percent to $81.56 per barrel.
In New York:
– The Dow Jones Industrial Average edged up 0.2 percent to 38,868.04.
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