📈 Market Analysis: As the Fed prepares rate cuts, shares rise and the dollar declines
Asian shares edged higher, with MSCI’s index up 0.2%, Japan’s Nikkei climbing 1%, and Hong Kong’s Hang Seng increasing by 0.7%. The U.S. dollar remained near one-year lows against the euro and sterling, following Federal Reserve minutes that hinted at a potential rate cut in September. Futures markets have priced in a 25 basis point cut next month, with further cuts anticipated by mid-2025. Treasury yields were stable, with ten-year yields at 3.81% and two-year yields at 3.94%.
Brent crude prices have fallen nearly 6% in August, trading at $76.04 per barrel, while gold remained above $2,500 per ounce. Whitehaven Coal’s shares surged 8% after announcing a significant stake sale. Japan’s manufacturing PMI showed slight contraction, and South Korea’s central bank kept rates unchanged but signaled potential future cuts.
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