S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Futures contracts on US and European indices are hovering around zero, whilst Asian markets, including Japan’s Nikkei and South Korea’s Kospi, have recorded sharp falls following a third consecutive session of losses on Wall Street. The main factor driving market sentiment is the global sell-off in the bond market, which has pushed yields on long-term government bonds in the US and Europe (including German and French bonds) to multi-year highs. Investors are assessing whether higher borrowing costs will harm the economy and are awaiting today’s (20:00) publication of the minutes from the July FOMC meeting to gauge the Federal Reserve’s next moves.
On the commodities market, crude oil prices are rising for the fourth day in a row, with Brent crude futures trading above US$91 per barrel (WTI is up 0.30 per cent), driven by fears that transport through the Strait of Hormuz could be blocked following the expiry of the ceasefire between the US and Iran.
Meanwhile, the US dollar is weakening and hovering near multi-month lows – the dollar index (USDIDX) is down 0.08 per cent – which coincides with a temporary pause in the rise in bond yields ahead of the publication of the Fed minutes. The Japanese yen is performing relatively well today, whilst we are seeing increased downward pressure on the Australian dollar, amongst others.
Source: xStation Among the various sectors of the economy, technology and telecoms companies are currently performing the worst, having lost over 2 per cent on the US stock market this week, whilst the VanEck Semiconductor ETF index fell by 4.1 per cent on Tuesday amid rising interest rates.
Source: XTB
The US energy sector, however, is performing best, with refining companies, amongst others, hitting new highs, buoyed by record refining margins and geopolitical turmoil in the Middle East. Target’s shares have risen by over 55 per cent this year, and investors are eagerly awaiting today’s financial report (to be published before the market opens) to assess the effectiveness of the turnaround plan led by CEO Michael Fiddelke.
The Chinese robot manufacturer Unitree Robotics made its debut on the Shanghai Stock Exchange, with its shares rising by nearly 630 per cent at one point, reflecting retail investors’ huge appetite for technological innovations. South Korean giant Samsung Electronics has announced a $158 million investment in a new production line for cooling systems in Gwangju, yet its shares fell by more than 7 per cent amid a wider sell-off in the Asian technology sector. Semiconductor and equipment manufacturers such as Teradyne, Marvell and Micron recorded significant losses of between 7 and 9 per cent on Tuesday, buckling under the pressure of high bond yields. Today’s session will also see the quarterly results of other retail and consumer goods giants take centre stage, including Lowe’s and Estée Lauder.
