Asian shares faced a halt on Wednesday due to conflicting factors: positive U.S. economic news and concerns about global growth. Additionally, the yen reached a 15-year low against the euro, causing Japan to consider intervening to prevent further losses. The strength of U.S. data and hawkish commentary from the European Central Bank also had an impact on bond markets, narrowing the odds on future rate hikes. A panel of central bankers, including Federal Reserve Chair Jerome Powell, ECB head Christine Lagarde, and Bank of Japan Governor Kazuo Ueda, gathered in Portugal to discuss these economic developments. Market analysts noted the continued resilience in interest rates and the need for ongoing tightening, particularly in the Eurozone. This cautious market sentiment reflected in a slight dip in Asian shares, while China’s blue chips and the yuan also experienced a decline. The Wall Street Journal report about potential restrictions on AI chip exports to China further impacted market sentiment, causing Nvidia’s shares to fall by 3 percent and Nasdaq futures to decrease by 0.4 percent. However, Japan’s tech companies were able to rally, leading to a 1.5-percent increase in the Nikkei. Futures for EuroSTOXX 50, FTSE, and S&P 500 showed mixed results. Despite recent softness in manufacturing surveys, U.S. data on housing, durable goods orders, and consumer sentiment exceeded expectations, bolstering the market’s belief in a July rate hike by the Federal Reserve. Bond yields in Europe rose due to hawkish statements from central bankers, with the market anticipating an ECB rate hike in July. This influenced the strength of the euro, keeping it near a 15-year peak against the yen. The dollar initially reached its highest point against the yen in eight months but later eased back due to Japanese officials’ concerns about the yen’s weakness. Japan’s top currency diplomat warned against further depreciation of the yen and stated that appropriate measures would be taken if necessary. Concerns about possible Japanese intervention in the currency market loomed, although the Bank of Japan’s current monetary policy made a yen rally unlikely. Gold prices stabilized after hitting a three-month low, while oil prices received a slight boost due to a larger-than-expected draw in U.S. crude and gasoline inventories. However, oil prices remain near their lows for the year.
Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.