Global markets focus on macroeconomic data agenda
While global markets continued to search for direction amid uncertainties regarding monetary policies, eyes turned to the intense macroeconomic data agenda to be announced around the world today. While European stock markets were on a buying-heavy course yesterday, the news flow in China continues to be the focus of investors.
The heavy macroeconomic data agenda will be announced around the world today as global marketscontinued to seek direction amid uncertainties over monetary policies.
The United States (US) and Chinese economies continue to influence investor decisions for different reasons.
While concerns over economic activity in China come to the fore, data flow indicating that the US economy remains tight raises questions about the US Federal Reserve's (Fed) future policies.
While this situation led to deepening selling pressure in bond markets, the US 10-year bond yield tested a 16-year high of 3.3660 percent yesterday. In money market pricing, forecasts for another rate hike by the Fed by the end of the year exceeded 40 percent.
Thomas Barkin, Head of the Richmond Fed, said that the recent moves in bond yields did not indicate inappropriate market tightening, but were likely a response to strong economic data.
Barkin said he would not talk about the outcome of the Fed's September meeting in advance, arguing that if inflation remains high and demand does not show signs of falling, this will require tighter monetary policy.
Analysts stated that the selling pressure in bond markets indicates that inflation concerns in the US are still strong and that the eyes are turned to the intense macroeconomic data calendar and the messages that Fed Chairman Jerome Powell will give in his speech at the Jackson Hole Economic Policy Symposium on Friday.
MONITORING NEWS FLOW IN CHINA
While European stock markets were on a buying-heavy course yesterday, the news flow in China continues to be the focus of investors.
While the data indicating that inflation in the region remains strong continues to strengthen the possibility that the European Central Bank (ECB) may raise the policy rate by 25 basis points at the next meeting, it is stated that the messages from Jackson Hole may be effective on these expectations.
Yesterday, the FTSE 100 index in the UK rose 0.18 percent, the FTSE MIB 30 index in Italy 0.64 percent, the DAX 40 index in Germany 0.66 percent, and the CAC 40 index in France 0.59 percent. Index futures contracts in Europe started the new day with an increase.
CHINESE INFLUENCE IN ASIA
While China-related uncertainties continued to have an impact on asset prices in Asian markets, higher-than-expected profit announcements of the country's most important technology companies were not enough to alleviate these concerns.
Accordingly, Baidu's second-quarter net revenues increased by 43 percent year-on-year.
On the other hand, while the People's Bank of China (PBoC) continues to support the yuan against the dollar, the impact of the statements made by Chinese officials to calm the markets on asset prices remains limited.
Near the close, the Nikkei 225 index in Japan rose 0.41 percent and the Hang Seng index in Hong Kong rose 0.5 percent, while the Shanghai composite index in China fell 0.6 percent and the Kospi index in South Korea lost 0.5 percent.
Source: NTV
