Global Markets:
- Asian Stock Markets : Nikkei down 0.90%, Shanghai Composite down 0.3%, Hang Seng up 0.78% ASX up 0.63%
- Commodities : Gold at $2545.35 (0.39%), Silver at $30.23 (-0.271%), Brent Oil at $78.6 (0.69%), WTI Oil at $75.32 (0.68%)
- Rates : US 10-year yield at 3.784, UK 10-year yield at 3.914, Germany 10-year yield at 2.225
News & Data:
- (USD) Core Retail Sales m/m 0.3% vs -0.2% expected
- (USD) Retail Sales m/m -0.3% vs -0.3% expected
Markets Update:
Asia-Pacific markets were mixed on Monday amid growing tensions in the Middle East, where Israel and Hezbollah exchanged strikes. Over the weekend, Reuters reported that Israel’s Air Force targeted Hezbollah sites in Lebanon, just before the Iran-backed group launched over 320 rockets toward Israel. Hezbollah claimed the attack was in retaliation for the assassination of senior commander Fuad Shukr last month. Despite the escalation, Hezbollah indicated it was not planning further strikes, and Israel’s Foreign Minister emphasized that the country is not seeking a full-scale war.
In response to these developments, oil prices saw an uptick, with Brent crude rising 0.69% to $78.62 and U.S. West Texas Intermediate increasing 0.68% to $75.34. The situation in the Middle East added to the already volatile market conditions as investors also considered recent comments from U.S. Federal Reserve Chairman Jerome Powell.
In Asia, investors focused on China’s central bank’s medium-term lending rates and Singapore’s July manufacturing data. Japan’s Nikkei 225 fell by 0.9%, while the Topix lost 1.13%. The Japanese yen strengthened by 0.33% to 143.9, its highest level since the August 5 stock sell-off. South Korea’s Kospi declined by 0.24%, and the Kosdaq slipped 0.96%. In contrast, Australia’s S&P/ASX 200 gained 0.68%, and Hong Kong’s Hang Seng index rose by 0.79%, though the mainland Chinese CSI 300 index edged down 0.15%.
On Friday, U.S. markets ended the week on a positive note following Powell’s remarks at Jackson Hole, Wyoming. The Dow Jones rose 1.14%, the Nasdaq advanced 1.47%, and the S&P 500 gained 1.15%. Powell hinted at potential rate cuts, although he did not specify the timing or magnitude, stating that the central bank’s decisions will depend on incoming data and the evolving economic outlook.
Upcoming Events:
- 12:30 PM GMT – USD Core Durable Goods Orders m/m
- 12:30 PM GMT – USD Durable Goods Orders m/m
