Wall Street stocks closed lower on Thursday as the comments from the Fed official reinforced expectations of an aggressive rate hike in the coming months. Both the S&P 500 and the Nasdaq indices dropped 0.8% and 0.61% respectively. Share price of Tesla declined over 6.5% after the electric carmaker missed revenue estimates.
Across Europe, shares of the regional markets actually went up yesterday, after the UK prime minister Liz Truss quitted her position, drawing to a close 45 days in office. The FTSE 100, CAC 40 and the DAX all rose 0.27%, 0.76% and 0.2% respectively.
In Asia Pacific, Australian indices fell on Friday, dragged down by real estate and financial stocks, with the ASX 200 down by 0.5%. Meanwhile, HK stocks experienced their worst performance as it has dropped to the lowest level since the end of the global financial crisis, with President Xi Jinping expecting to secure a third term. The Hang Seng index currently trading at 16,230 points.
Oil price dropped slightly on Friday after a warning on economic growth from the Fed but looking to end the week in positive territory. Likewise, gold price also declined due to a spike of U.S. Treasury yields, currently at $1,626.5 per ounce. On the other hand, the Japanese Yen broke past 150 against the greenback for the first time in more than three decades.
Figure 1 (Source: IS Prime) USDCNH daily: The offshore yuan hit a record low on Thursday after the Chinese central back leaves key lending rate unchanged, to 7.27883 against the dollar.
Headliner to Review
- The Australian employment change figure came out to be much less than the forecasted figure, to add only 0.9K people compared to 25K expected.
- The October Philly Fed manufacturing index edged up 1.2 points but remained negative at -8.7, the fourth negative reading in the past five months.
Headliner to Watch
- Both the manufacturing and services PMI figures are expected to release across various nations, including France, Germany, Eurozone, UK and U.S, on Monday.
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