Oil breaks US$100, Wall Street retreats and bond yields rise, inflation is becoming the market’s biggest risk again Global markets are starting Thursday in a more defensive position. Brent crude has broken above US$100 a barrel , U.S. Treasury yields are pushing higher, and Wall Street fell for a third straight session as investors reassess whether central banks may need to keep tightening rather than easing. For Malaysian investors, the key chain today is increasingly clear: Oil → inflation → interest rates → bond yields → USD/MYR → Bursa valuations. 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,636.36, -0.48% 🇺🇸 Dow Jones 52,380.66, -0.77% 🇺🇸 Nasdaq 26,253.34, -0.64% 🇲🇾 FBM KLCI 1,714.34, virtually flat 💵 USD/MYR ~4.06 🇺🇸 U.S. 10Y Treasury ~4.84% 🇺🇸 U.S. 2Y Treasury ~4.42% 🥇 Gold ~US$4,396/oz 🛢️ Brent crude US$101.21/bbl 🛢️ WTI crude US$96.05/bbl ₿ Bitcoin ~US$79,300 🇯🇵 Nikkei ~64,760, -0.6% this morning Brent jumped about 3.4% Wednesda...
Wall Street's main indexes surged on Wednesday, driven by a dovish shift from Japan's top policymaker following last week's unexpected interest rate hike, which had triggered significant volatility in global markets.
.jpg)
Key Highlights:
- Global Market Sentiment: Global equity markets rebounded after Bank of Japan (BOJ) Deputy Governor Shinichi Uchida assured that the central bank would not raise interest rates during financial instability, leading to a weaker yen and improved market sentiment.
- Previous Volatility: The BOJ's surprise rate hike on July 31, the first in 15 years, caused a surge in the yen and a global stock market selloff as investors exited sharp currency carry trade positions.
"Many trades become 'crowded,' and people exploit them as an easy money-making route, which often ends poorly," said JJ Kinahan, CEO of IG Group North America. "Things got overdone quickly, and now, cooler heads are prevailing."
Market Movements:
- The CBOE Volatility Index, Wall Street's fear gauge, dropped to 22.84 points from Monday's high of 65.73.
- Index Performance at 09:35 am ET:
- Dow Jones Industrial Average: +285.67 points (+0.73%) to 39,279.77
- S&P 500: +64.26 points (+1.23%) to 5,304.29
- Nasdaq Composite: +282.80 points (+1.73%) to 16,649.66
Big Tech Recovery:
- Leading tech names such as Nvidia and Amazon.com rebounded, rising about 3% and 2.3%, respectively.
- Ten of the 11 major S&P sectors traded higher, led by information technology and energy.
Sector Highlights:
- The S&P 500 and Nasdaq rose over 1% on Tuesday after Federal Reserve (Fed) officials' comments eased recession fears, shifting the focus back to earnings.
- Fortinet soared 21.9% after raising its annual revenue forecast.
- Notable Declines:
- Airbnb: -14.1% after forecasting lower-than-expected third-quarter revenue and shorter booking windows due to economic uncertainty.
- Super Micro Computer: -13.6% after missing quarterly adjusted gross margin estimates; rival Dell Technologies fell 5.3%.
- Amgen: -3.1% as second-quarter profit fell 1% despite a 20% revenue increase.
- Charles River Laboratories: -12% after lowering its annual forecast, citing weak demand for drug discovery and development services.
Upcoming Events:
- Markets anticipate further commentary on monetary policy from US central bank officials next week, leading up to the Jackson Hole event where Fed Chair Jerome Powell is scheduled to speak.
Market Breadth:
- Advancing issues outnumbered decliners by a 5.51-to-1 ratio on the NYSE and a 3.74-to-1 ratio on the Nasdaq.
- The S&P 500 posted five new 52-week highs and one new low, while the Nasdaq Composite recorded 19 new highs and 26 new lows.
Comments
Post a Comment