On Friday, Asian stocks headed south as market participants mostly held fire ahead of clues from Janet Yellen, Fed Chair.
The S&P/ASX 200 tumbled 0.1%, South Korean Kospi lost 0.4%, while in Hong Kong, the Hang Seng Index acquired 0.6%. As for the Shanghai Composite index, it edged up by 0.1%.
Fed Chair is expected to speak later in the global trading day at the Jackson Hole meeting of key bankers.
In Japan, the Nikkei Stock Average slumped 0.9%, with insurance and automobile shares affected by expectations that Fed Chair would deliver downbeat news regarding the American economy. There’s no doubt it would push down bond profits and weaken the greenback.
Lower yields diminish insurers’ returns, while a weakening greenback pushes the Japanese yen higher, thus hurting Japan’s export competitiveness.
Toyota Motor tumbled 3%, Honda Motor lost 2.5%, while Nissan Motor sank 1%.
Financial experts find a December rate hike quite probable.
FTSE 100 tumbles, though miners find relief
British shares headed south, set to round off the trading week with a loss, as market participants waited for an update on Britain’s economic growth as well as a closely watched speech from Yanet Yellen, Fed Chair.
The FTSE 100 dropped 0.2%, being worth 6,802.00, with healthcare as well as consumer goods among the dropping sectors. As for miners, they traded higher after staying under pressure this week. The London benchmark has found itself on track to sink 0.6% for the week - a second straight weekly loss.
On Thursday, the index sagged 0.3%, weighed by those losses for drug makers and miners.
However, on Friday, BAE Systems PLC managed to top the FTSE 100. Shares grew 1.2% as the defense company’s rating was upgraded to purchase from hold at Berenberg.
Friday’s trading session will see the issue of a second reading of the UK’s GDP for the second quarter.
Ahead of the British GDP publication, in New York, the sterling rose $1.3217 from $1.3175 late on Thursday.
On Tuesday, Asian stocks held weaker as markets became cautious on Japan as well as its efforts on monetary and also fiscal policies and noted poor Australia data.
In Japan, the Nikkei 225 edged down 0.68% after Japanese Finance Minister Taro Aso told exchange rates were demonstrating extremely nervous moves. Additionally, the minister unveiled its readiness to closely watch currency movements.
Meanwhile, in Australia, the S&P/ASX dropped 0.19% as June’s building approvals sagged 2.9%, compared with a 0.5% revenue observed month-on-month as well as the trade balance soared to a deficit of approximately A$3.195 billion from an expected deficit of A$2 billion as well as last month’s figure of about A$2.418 billion.
The Shanghai Composite slumped 0.16%.
Overnight, American stocks showed quite mixed performance after Monday’s close, as revenues in the Healthcare, Technology and Consumer Services sectors brought stocks higher, while losses in the Oil & Gas, Telecoms as well as Basic Materials sectors brought stocks down.
Australian stocks go down at close of trade
Australian shares traded after the close because losses in the Resources, Energy as well as Gold sectors brought stocks down.
The S&P/ASX 200 dropped 0.72% at the close in Australia.
The best performers of the trading session on the S&P/ASX 200 included Credit Corp Group Ltd with a 11.19% soar at 14.900, GWA Group Ltd with its 3.76% gain at 2.210 and Ozforex Grp with a 2.86% surge at 2.520.
As for the worst performers of the trading session, we should point out to Seven West Media Ltd with its 17.87% tumble at 0.850, Nine Ent Fpo with a 13.89% slump at 0.930 and Beach Energy Ltd, that descended 5.70%, being worth 0.537.
Dropping shares outnumbered surging ones on the Australia Stock Exchange by 697 to 421, while 314 stood intact.
Stocks in Credit Corp Group Ltd soared to all time peaks, up 11.19%. Stocks in Nine Ent Fpo edged down to all time minimums, sagging 13.89%.
The S&P/ASX 200 VIX, gauging the implied volatility of S&P/ASX 200 options, surged 2.87%, trading at 14.752.
On Monday, crude-oil prices kicked off August in rather a choppy trade because ongoing glut in refined and crude oil keeps exerting pressure on crude prices.
In New York, September delivery light and sweet crude futures traded at $41.75 a barrel, showing a $0.14 rise. Meanwhile, the October contract of Brent crude gained up to $0.18, being worth $43.71 per barrel after the initial dip at the start of the trading session.
The market appears to be more volatile also erratic ahead of the expiry of a contract because market participants are on the verge of rebalancing their books by simply covering their long or short trading positions.
However, supply and demand trends in the crude market are still lopsided, while prices are most likely to move sideway in the nearer future especially considering the absence of strong push or pull factors.
Over the weekend, American crude prices clawed back some ground after the major American currency got sold heavily.
Asian shares hit one-year high
Asian stocks managed to hit a one-year peak, following gloom American economic growth data, which ruined hopes that the Fed would lift interest rates in the nearer months.
American GDP surged at a 1.2% annual rate during the April-June period, which is less than a half of a 2.6% growth rate economists had expected.
Market participants have been shifting their money to Asia, that’s likely to be least influsenced by Brexit, while the Fed appears to be in no hurry to increase its interest rates.
MSCI's broadest index of Asia-Pacific stocks outside Japan soared 1.3%, getting to the highest level for about a year.
European shares are supposed to head north, with spread betters looking at surge of 0.7% in Germany's DAX as well as 0.4% in the UK’s FTSE.
Asian markets demonstrated quite limited reaction to a better-than-expected private poll on China's factory sector.
Meanwhile, the Caixin/Markit Manufacturing Purchasing Managers' index or PMI ascended to a 1 1/2-year peak of 50.6, thus beating market expectations for 48.7.
On Friday, Asian shares demonstrated mixed performance with traders waiting for word from the BOJ on the scope for further monetary easing.
The Nikkei 225 soared 0.24% ahead of the latest monetary policy review by the BOJ, while the S&P/ASX index headed north 0.04%.
In China, stocks dipped even as financial experts told that the banking regulator's proposals to restrict investment in equities across wealth-management products will have rather a limited effect on money flowing into the stock market.
The Shanghai Composite Index edged down 0.14%, while in Hong Kong the Hang Seng Index last traded at 0.52%.
Overnight, American shares mostly stood still on Thursday, being in tight, range-bound trade, because a downbeat quarter from Ford Motor Company as well as ongoing drops in crude prices compensated momentum from decent results in the technology sector on the busiest day of second quarter earnings season.
The Dow Jones Industrial Average sagged 15.82, showing a 0.09% dip and hitting 18,456.35.
FTSE 100 drops as Shell, Lloyds sag after earnings reports
Yesterday, British blue-chip shares went down as market participants absorbed a storm of corporate earnings updates with stocks of Royal Dutch Shell PLC as well as Lloyds Banking Group PLC dropping after their data.
The FTSE 100 tumbled 0.1%, being worth 6,746.48, though it had been down by more during the early trading session On Wednesday, the index closed +0.4%, hitting 6,750.43, the best outcome since last August.
The prospect of the US interest-rate hike was helping to get the London benchmark out from that 2016 peak. Late Wednesday, the Fed kept the door open for an interest-rate lift in September, stressing that near-term risks to its outlook have decreased.
Shell stocks sagged 3.2% after the crude major reported a dip in its second-quarter revenue, telling that lower crude prices still remain a serious challenge across the business, especially in the upstream. Its adjusted revenues of $1.05 billion dipped short of a $2.27 billion forecast drawn from a Wall Street Journal survey of experts.
On Monday, the Japanese stock reported the biggest daily revenue in four months, erasing last week's losses due to concerns of Brexit.
Nikkei index of Japanese Stock Average closed up +4% amid rising expectations for a new fiscal stimulus package, will recovery economy, the third largest one in the world. The move appears to the best daily revenue for Japanese shares from March 2nd, when the benchmark rose 4.1%.
Elsewhere in the region, S&P / ASX 200 Australia closed +2%, South Korean's Kospi Index rose 1.3%, while the Hang Seng Index in Hong Kong rose 1.6%. In China, the Shanghai Composite Index was up 0.2%.
Japanese stocks soared after Sunday, the ruling coalition of Prime Minister Shinzo Abe, headed by Liberal Democratic Party, improved its control of the upper house. Accordingly, coalition's firmer grip simply, which means that policy makers are more freedom when they approve the fiscal stimulus package.
On Monday, Mr. Abe said on Tuesday, his cabinet will have plans for a stimulus package, although he did not specify the size.
Prospects of economic stimulus policies encourage market participants, who were cheered by the spirit of the US jobs data that was stronger than expected on Friday.