On Tuesday, equity markets showed a mixed performance as investors awaited central bank decisions, key economic data, and earnings reports from tech giants this week. The US Federal Reserve is anticipated to maintain its current monetary policy stance during Wednesday’s meeting, but market watchers will closely analyze the post-meeting statement for hints of a potential rate cut in September. Fed Chair Jerome Powell’s recent comments have raised expectations for a rate cut this year, with some predicting up to three cuts by January.
Meanwhile, the Bank of Japan is also set to make a decision, with speculations on a rate hike swirling around. BoJ is expected to disclose plans for tapering its bond-buying program, which has kept borrowing costs low. However, experts believe that an immediate rate hike is unlikely, as it could disrupt the market and lead to a stronger yen.
The uncertainty in central bank decisions has led to fluctuating Asian equities, with some markets showing a slight improvement while others experienced a decline. Stock markets worldwide have been affected by disappointing earnings reports from major tech companies, causing concerns about the sustainability of the recent stock market rally.
In addition to central bank decisions, investors are monitoring oil prices, which have been under pressure due to concerns about weakening demand. Political tensions in the Middle East have also contributed to market jitters, with ongoing conflicts adding to the uncertainty.
– Key figures around 0710 GMT –
Tokyo – Nikkei 225: UP 0.2 percent at 38,525.95 (close)
Hong Kong – Hang Seng Index: DOWN 1.4 percent at 16,998.11
Shanghai – Composite: DOWN 0.4 percent at 2,879.30 (close)
London – FTSE 100: DOWN 0.1 percent at 8,281.03
Dollar/yen: UP at 155.05 yen from 154.00 yen on Monday
Euro/dollar: DOWN at $1.0820 from $1.0826
Pound/dollar: DOWN at $1.2851 from $1.2862
Euro/pound: UP at 84.19 pence from 84.14 pence
West Texas Intermediate: DOWN 0.5 percent at $75.40 per barrel
Brent North Sea Crude: DOWN 0.5 percent at $79.41 per barrel
New York – Dow: DOWN 0.1 percent at 40,539.93 (close)
dan/mtp
