26/07/2023
Today’s Announcements & News
Asia
Asia-Pacific markets are expected to experience a decline as investors prepare for the U.S. Federal Reserve’s rate decision on Wednesday. The Fed is anticipated to approve its 11th interest rate increase since March 2022.
Investors are pricing in a high probability that the Fed will raise interest rates by a quarter percentage point, bringing the benchmark borrowing rate to a target range of 5.25%-5.5%. This would result in the upper boundary of the federal funds rate reaching its highest level since January 2001.
In Australia, futures for the S&P/ASX 200 suggest a lower opening at 7,313 compared to the index’s last close of 7,339.7. This comes ahead of the release of inflation figures for June, which will be a crucial consideration for the Reserve Bank of Australia’s rate decision on August 1.
Similarly, Japan’s Nikkei 225 is expected to open weak, with futures contracts in Chicago and Osaka trading lower than the index’s last close.
Hong Kong’s Hang Seng index is also projected to retreat after experiencing gains of over 4% on Tuesday, with futures pointing to a lower opening compared to the index’s previous close.
US
Tuesday night, S&P 500 futures remained relatively unchanged as investors analyzed earnings reports from major technology companies and prepared for the upcoming interest rate policy decision on Wednesday.
S&P 500 futures showed little movement, while Nasdaq 100 futures declined by 0.2%. Dow Jones Industrial Average futures dipped 42 points, or 0.1%.
In extended trading, mega-cap tech stocks experienced significant shifts after releasing their earnings reports. Alphabet, the parent company of Google, saw an increase of over 6% due to strong cloud revenue growth, leading to a better-than-expected quarter. Conversely, Microsoft’s stock declined by more than 3% following its report, which indicated slower cloud revenue growth.
In addition to Big Tech, Snap’s stock dropped by 19% in after-hours trading due to providing weak guidance for its current-quarter performance.
Commodity
On Tuesday, gold prices saw an increase due to a weaker U.S. dollar and the anticipation that the U.S. Federal Reserve may conclude its monetary tightening cycle after the expected rate hike this week. Spot gold rose by 0.5% to $1,964.5827 per ounce, and U.S. gold futures also edged up by 0.2% to $1,966.60.
Meanwhile, oil prices reached new three-month highs as signs of tightening supplies and assurances from Chinese authorities to bolster their economy lifted market sentiment. Brent futures settled up 90 cents at $83.64 a barrel, reaching as high as $83.87 earlier, marking the highest level since April 19.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.
