Global Markets:
● Asian Stock Markets : Nikkei down 1.13%, Shanghai Composite down 0.20% Hang Seng down 0.70% ASX down 0.03%
● Commodities : Gold at $4,474.89 (-1.24%) Silver at $66.885 (-1.33%), Brent Oil at 90.17 (4.69%), WTI Oil at 85.07 (2.00%)
● Rates : US 10-year yield at 4.710, UK 10-year yield at 5.0695, Germany 10-year yield at 3.2733
News & Data:
● (USD) Prelim Benchmark Payrolls Revision
79K to 911K expected
Markets Update:
U.S. stock futures slipped Sunday evening after the U.S. military struck Iranian rocket launchers on Larak Island in the Strait of Hormuz, raising concerns that tensions in the Middle East could escalate.
Dow Jones Industrial Average futures fell 85 points, or 0.16%, while S&P 500 and Nasdaq-100 futures each declined about 0.2%.
Asian markets also moved lower. South Korea’s Kospi dropped 3.5%, Japan’s Nikkei 225 declined 2.16%, Hong Kong’s Hang Seng fell 0.88%, and China’s CSI 300 lost 0.61%. Australia’s S&P/ASX 200 bucked the trend, gaining 0.12%.
Despite the latest geopolitical concerns, Wall Street is heading toward a strong August. The Dow is up 2.1% for the month and is on track for its fifth straight monthly gain. The S&P 500 and Nasdaq Composite are higher by roughly 3% and 4%, respectively.
Technology stocks have led the rally, particularly companies linked to artificial intelligence. The S&P 500 technology sector has gained nearly 6%, while Nvidia, Microsoft and Micron Technology have risen more than 8%, 11% and 13%.
However, inflation concerns have kept markets volatile, pushing Treasury yields to multiyear highs. Federal Reserve Chair Kevin Warsh recently expressed concern about persistent inflation, increasing expectations for a potential September rate hike.
Meanwhile, oil prices jumped following the Iranian strike, with U.S. crude rising 2.1% to $85.14 per barrel and Brent gaining 2% to $89.90.
Investors now await Friday’s U.S. jobs report and fresh manufacturing and services data.
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