Asian shares mostly declined on Tuesday in anticipation of central bank meetings happening globally. The Federal Reserve, Bank of England, and Bank of Japan are holding monetary policy meetings this week. Japan’s Nikkei 225, Australia’s S&P/ASX 200, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai Composite all experienced losses. In Japan, the unemployment rate in June decreased slightly to 2.5%. Meanwhile, U.S. stock indexes closed mixed on Monday, with the S&P 500 edging up, the Dow Jones slipping, and the Nasdaq adding points.
ON Semiconductor saw a jump in its stock price after reporting stronger profits than expected. McDonald’s also saw an increase in its stock price despite falling short of profit and revenue forecasts for the latest quarter. On the other hand, oil-and-gas companies experienced slides due to a decline in oil prices. This was partly attributed to concerns about China’s economic slowdown impacting crude consumption. Major tech companies such as Microsoft, Meta Platforms, Apple, and Amazon are scheduled to report their results later in the week, with investors closely monitoring their performance.
The U.S. stock market has seen support from areas outside of Big Tech, such as smaller stocks that surged in anticipation of the Federal Reserve cutting interest rates to combat inflation. However, the market saw a reversal of this trend on Monday, with Big Tech stocks rising while smaller stocks in the Russell 2000 index decreased. Despite this, the Russell 2000 index remains up for the month. The Federal Reserve is set to announce its decision on interest rates later in the week, with expectations of easing beginning in September.
Treasury yields remained steady in the bond market, with the yield on the 10-year Treasury slipping slightly. In energy trading, benchmark U.S. crude and Brent crude both saw declines in prices. Currency trading saw a slight increase in the U.S. dollar against the Japanese yen. Overall, the market is awaiting the outcomes of central bank meetings and earnings reports from major companies to gauge the future direction of global markets. Analysts are closely watching the performance of key players in various sectors to assess the overall health of the economy and stock market.
