Asian markets trade higher despite US Fed’s hawkish comments

 

Good morning and welcome to the morning reports, Indian stock markets will be closed on Thursday 29 June 2023, on account of Bakri Id.

 

Asian Markets Update

 

Asian markets are mostly trading higher on Thursday despite hawkish comments made by the US Fed Chair Powell at the ECB Central Bank forum on Wednesday, indicating two more hikes on the card. Japan’s Nikkei extended its previous session gains, up by 0.94 percent, as the government data showed that Japan’s retail sales rose in May compared to a year ago, slightly beating economist estimates.

South Korea is trading higher by 0.28 percent after registering a fall in the previous session. Hang Seng and Shanghai indexes are trading lower by 0.85 percent and 0.16 percent respectively. Several Asian markets like Singapore, Indonesia, and Malaysia are closed on Thursday for the holidays. SGX Nifty is trading higher by 9 points or 0.05 percent at 19166 levels.

 

U.S. Stock Market Indexes Update

 

The US stock market indexes mostly closed in the red on Wednesday, as Dow and S&P 500 slipped into the red after the US Fed Chairman Jerome Powell said further rate hikes in two consecutive meetings. The big tech stocks gained and kept losses in check, as Treasury yields declined despite a hawkish comment from Powell.

The big tech stock Google gained more than 1 percent after Treasury yields slipped. However, semiconductor stocks capped the gins in the markets, as NVIDIA declined on concern about the impact of US fresh restrictions on AI chip exports to China. Energy stocks gained, as oil prices jumped after US weekly crude stockpiles fell more than expected.

The key US stock market indexes, Dow Jones and S&P 500 declined by 0.22 percent and 0.04 percent respectively, while tech-heavy Nasdaq gained 0.27 percent on Wednesday.

 

European Stock Market Indexes update

 

European stock market indexes ended higher on Wednesday, as investors were encouraged by the upbeat data from the US markets released on Tuesday which offset the hawkish remarks from top central bank officials in the ECB central bankers forum. 

The US Fed Chairman Jerome Powell while delivering his speech said that more restrictions are coming with interest rate hikes in two consecutive meetings this year, as labor markets continued to show strength. Meanwhile, ECB president Christine Lagarde was very clear that the policymaker will not consider a pause in rate hikes at the moment.

The pan-European Stoxx 600 index closed higher by 0.70 percent on Wednesday. The majority of the sectoral indices ended in the green, tech stock lead the gains while the mining stocks fell the most on Wednesday. The key European stock market indexes, CAC and DAX ended higher by 0.94 percent and 0.67 percent respectively, while UK’s FTSE was up by 0.52 percent.

 

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Editorial desk