Asian markets were mixed, US futures fell and the yuan rose

Bloomberg – Asian markets were mixed and cautious on Thursday, While US stock futures fell after disappointing results from companies including Netflix Inc. (nflx) and Tesla Inc. (TSLA). The value of the yuan.

Stocks rose in Hong Kong, but fell in Japan and South Korea. Australian stocks advanced.

Investors will be watching Taiwan Semiconductor Manufacturing Co.’s results will be released on Thursday To continue to measure demand in the semiconductor sector. Sales at the world’s largest supplier of custom chips fell for the third month in a row last month.

within, S&P 500 and Nasdaq 100 futures fell in Asia after Netflix fell 8.26% In after-market trading, sales came in below expectations and lowered its expectations for the third quarter. Tesla shares fell 4.19 percent after profitability fell in the second quarter, a sign of the EV maker’s shrinking margins. The S&P 500 rose for the third day in a row, while the tech-savvy Nasdaq 100 ended slightly lower on Wednesday.

China will remain in the spotlight as investors continue to wait for Beijing to provide more stimulus to revive the economy. The country kept its main lending rates unchanged on Thursday, while the central bank set its daily limits for the yuan at the biggest bias since November. The yuan rose 0.7% against the dollar.

“China is still ‘bad news is good news’,” he said. Jun Bei Liu, Portfolio Manager at Tribeca Investment Partnersin Bloomberg Television. So far, stimulus measures are aimed at helping cyclical sectors such as housing and consumption, “and we think there will be more and more measures that target that stage.”

within, The dollar fell against all G10 currencies, and the greenback index extended its weakness so far this month to more than 6%.due to speculation about a cycle of extreme increases by the Federal Reserve while lowering inflation.

Yen rose. Previous data showed that Japan’s Trade Balance posted an unexpected surplus in Junethe first since July 2021.

Strategists at Goldman Sachs Group Inc. Including Jenny in a note: “Cooler inflation expectations and associated political implications mean that the recent dollar sell-off could extend in the near term, particularly against emerging market currencies.” Having said that, we maintain that The general decline in the value of the dollar throughout this year is likely to be shallow and moderate“.

Treasury bonds stabilized after rising on Wednesday, as UK inflation fell to its lowest level in 15 months, adding to evidence that central banks may be slowing down interest rate hikes. But the gains were pulled back by higher commodity prices after a warning from Russia that any ship bound for Ukraine would be considered an arms carrier.

About to close

Easing price pressure in the US and the UK raises investors’ hopes that the tightening campaign is about to end. but, Stalling economic reports have made it clear that the Fed is far from declaring victory.

“The risk of recession has been greatly reduced,” he declared. Neil Dutta, Chief Economics Officer at Renaissance Macro Researchin Bloomberg Television. “I think the markets are right to devote a little bit more to the soft landing story, but I think a good argument can be made that maybe we’re getting on our skis a little bit here and maybe we should put more potential into the return of the boom inflation scenario.”

Meanwhile, in regular trading on Wednesday, Apple Inc. filed After Bloomberg reported on its efforts to build artificial intelligence toolswhile Goldman Sachs Group Inc. closed higher, even after its earnings slipped compared to improvements earlier in the week from other investment firms.

next to, Oil has stabilized as demand concerns persist The strength of the dollar was offset by the decline in crude oil reserves in the United States. Gold reached its highest level since May.

Main events for this week:

• Loan interest rates in China, Thursday
• US Initial Jobless Claims, Existing Home Sales, Board Index, Thursday
• Japanese CPI, Friday

Some of the major movements in the markets:

procedures

• S&P 500 futures were down 0.2% at 9:09 a.m. Tokyo time. The S&P 500 rose 0.2%.
• Nasdaq 100 futures fell 0.6%. The Nasdaq 100 hasn’t changed a bit.
• Japan’s Topix fell 0.1%.
• Australia’s S&P/ASX 200 rose 0.2%.
• Hong Kong Hang Seng futures rose 0.3%.

Currency exchange rate

• The Bloomberg Spot Dollar Index hasn’t changed much
• The euro was trading at $1.1206.
• The Japanese yen traded at 139.55 per dollar.
• The yuan was trading at 7.2267 to the dollar.
• The Australian dollar was trading at $0.6776.

Digital currencies

• Bitcoin fell 0.1% to $29,922.66.
• Ether fell 0.6% to $1,887.42.

bonds

• The yield on the 10-year Treasury bill barely moved to 3.75%.
• The yield on the Australian 10-year note rose six basis points, to 3.93%.
• raw materials
• A barrel of West Texas Intermediate crude fell 0.2 percent to $75.17.
• Spot gold rose 0.1 percent to $1,978.65 an ounce.

This article was produced with the help of Bloomberg Automation.

– With assistance from Stephen Kirkland.

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