On Tuesday Asian stocks opened higher, buoyed by gains on Wall Street. Japan’s Nikkei 225 rose 1 %, while South Korea’s Kospi climbed 0.3 %, driven by an increase in Samsung electronics despite ongoing union strikes.
Hong Kong’s Hang Seng index futures were slightly up, reflecting optimism in the region. In the US, the S&P 500 and NASDAQ composite closed at all-time highs on Monday. The S&P 500 gained 0.1 % and the NASDAQ rose 0.3 %, driven by easing inflation pressures and investor optimism about the Federal Reserve’s potential policy easing.
However, the Dow Jones industrial average dipped 0.1 %, indicating some market caution. Crude oil prices fell to a one-week low this morning. Brent futures settled around 85 per dollar barrel, as Hurricane Beryl disrupted US Gulf Coast refineries and ports.
Analysts noted that hedging activities ahead of the storm were unwound, contributing to the price drop. Additionally, hopes for a Gaza ceasefire added to the downward pressure on oil prices.
Gold prices also fell by more than 1 % in the previous session due to profit-taking after a previous rally and a shift towards riskier equities. The precious metal’s decline followed investor speculation about potential US Federal Reserve interest rate cuts in September.
This week, markets will be closely monitoring Federal Reserve Chair Jerome Powell’s testimony before Congress, key inflation data with the June consumer price index on Thursday, and the producer price index on Friday.
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