Asian stocks extended their recent losses on July 22 despite China’s interest rate cut, while Wall Street futures strengthened after President Joe Biden pulled out of the election campaign. This measure is expected to have a particular impact on economic and market dynamics.
The People’s Bank of China cut short- and long-term rates through ten key issues to stimulate growth. This move drove bond yields to decline along the curve.
The move follows Beijing’s release on Sunday of a policy document outlining its economic goals.
“The rate cut is a step in the right direction. I expect more rate cuts after the Federal Reserve enters a cycle of rate cuts,” said Zhang Zhiwei, president and chief economist at Pinpoint Asset Management.
“The fact that the People’s Bank of China waited for the Federal Reserve to first make rate cuts indicates that the government recognizes the downward pressure on the Chinese economy. “
The move failed to motivate investors, as MSCI’s broadest index of Asia-Pacific shares excluding Japan (. MIAPJ0000PUS) fell 0. 2%, after a week of 3% decline.
The Nikkei of Japan (. N225) saw a 0. 9% drop, while South Korea’s benchmark index (. KS11) experienced a 1. 0% drop. THE. The CSI300 index of Chinese blue-chip stocks was unchanged, rising nearly 2% last week.
PredictIT, an online site, reported that the value of a Donald Trump win fell four cents to 60 cents, while Harris’s value rose 12 cents to 39 cents. Another possible Democratic challenger, California Governor Gavin Newsom, fell behind four hundred.
The news won well in the markets, S stock futures
“As the effects of Trump polls have improved, markets have favored positions anticipating more industrial barriers and, in all likelihood, higher inflation,” ANZ analysts said.
“Some polls show Harris outperforming Biden as opposed to Trump, and Democrats expect upcoming polls to show a Harris-induced surge. “
Tesla (TSLA. O) and Alphabet (GOOGL. O), Google’s parent company, will release the “Magnificent Seven” organization of mega-cap stocks a week of corporate earnings reports.
Other corporations reporting are General Electric (GE. N), General Motors (GM. N), Ford (F. N) and Lockheed Martin (LMT. N).
The generation sector is expected to see a 17% year-on-year increase in profits, while the communications sector (. SPLRCL) experience a 22% increase in profits.
According to LSEG IBES, these benefits would exceed the estimated 11% increase for the S
The Federal Reserve’s favorite inflation measure will be released on July 19, the end of a busy week of economic news. In June, the public-private expenditure index is expected to increase by 0. 1%, lowering the annual rate to 2. 5%.
In addition, Reuters reported that complex second-quarter gross domestic product figures are expected to show an annualized increase of 1. 9% from the 1. 4% recorded in the first quarter.
The Atlanta Fed’s heavily monitored GDPNow indicator shows an expansion rate of 2. 7%, indicating an upward movement.
The Bank of Canada will most likely cut rates by a quarter point to 4. 5% at its July 17 meeting.
The euro rose 0. 1% to $1. 0890, causing the Japanese yen to give up some of its safe-haven gains from last week in currency markets. At 157. 51, the Japanese yen maintained its balance with the Array.
Gold held at $2,408 an ounce in commodity markets, far from the record high of $2,483. 60 set last week.
Israeli forces clashed with Palestinian fighters in the southern city of Rafah on July 21, leading to a slight drop in oil costs and a lack of progress on a ceasefire agreement in Gaza.
The price of Brent rose 43 cents to $83. 06 a barrel, while the price of U. S. crude rose 55 cents to $80. 68 a barrel.
Disclaimer: EconoTimes provides references and links to selected blogs and other business and market data resources as an educational service to its consumers and clients and does not endorse the reviews or recommendations of the blogs or other data resources. Clients and clients are requested to carefully consider the reviews and analyzes presented in blogs or other data resources in the context of the client’s or potential client’s individual research and decision-making. None of the blogs or other data resources are worth considering historically. Past functionality does not guarantee long-term effects and EconoTimes in particular advises its clients to carefully consider all statements and representations made through advisors, bloggers, fund managers and formula providers before making an investment budget or Open an account with a stock brokerage house. Any news, reviews, research, insights or other data contained on this online page is provided as general market observation and does not constitute investment or trading advice. EconoTimes expressly disclaims any liability for any loss of capital or profits, without limitation, which may arise directly or indirectly from the use of or reliance on this data. As with all consulting services of this type, beyond effects never guarantee long-term effects.