📆 Wednesday, July 17
► European stocks fell on Wednesday, pressured by a slump in technology shares. The Stoxx 600 index is trading more than 0.5% lower, mainly due to ASML Holding, which tumbled almost 8% due to concerns about a severe US chip crackdown on China despite higher-than-expected orders. UK inflation remained unchanged at 2% in June, higher than the expected 1.9%, leading traders to reduce bets on an August rate cut from the Bank of England. The GBP rose to the day’s high against the USD, reflecting these inflation concerns. Market’s await the ECB’s rate decision due tomorrow.
► US equity futures were down, with S&P 500 contracts dropping 0.5% and Nasdaq 100 slipping 0.8%. This followed mixed results in Tuesday's session where the Dow & S&P 500 reached a new record high. Treasury yields stabilized after dropping yesterday, with the 10-year yield sitting at around 4.17%. Traders are cautious ahead of the Federal Reserve's Beige Book release, as well as housing starts and building permits data for June. The optimism around a potential rate cut by the Fed in September continues to support risk-on sentiment, though geopolitical tensions and trade risks remain a concern.
► Most Asian markets closed in the red, reacting to President Xi Jinping’s recent address at the Third Plenum and ongoing US-China trade concerns. Japan's Nikkei 225 fell 0.43%, with the JPY steadying amid intervention fears. The Reuters Tankan survey showed improved sentiment among large manufacturers in Japan, ahead of the Bank of Japan's policy meeting. China's Shanghai Composite dipped 0.41%, digesting President Xi's strategic agenda amidst economic challenges. Hong Kong’s Hang Seng Index closed almost unchanged at -0.01%, while Australia's S&P/ASX 200 hit fresh all-time highs, rising 0.96%.
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