The market signals are less than favorable, with Asia facing a half-percent pressure and GIFT Nifty down by 75 points. The US market’s downward spiral persists as the Dow experienced a 290-point drop recently. Despite trading flat today, US FUTURES have closed down for three consecutive days, primarily influenced by the slump in big tech stocks. Notably, the S&P 500 index has declined by 5.1% since its peak on July 27.
Rising US Bond Yields:
The US market witnesses a continual rise in the 10-year Treasury yield for the seventh consecutive day. Currently at a 15-year high of 4.28%, investors keenly await the Federal Reserve’s stance on inflation in its upcoming monetary policy decisions.
Evergrande’s Bankruptcy:
The Chinese real estate giant Evergrande faces bankruptcy, filing for New York Chapter 15 bankruptcy protection. As China’s second-largest real estate company, Evergrande’s financial woes signal potential instability within the broader real estate sector, magnified by the nation’s economic downturn over the past two years.
Yuan Stabilization Efforts:
In response to the declining Chinese yuan against the dollar, the government has directed state-run banks to intervene in the currency market. The yuan’s plunge to 7.35/$ marks its lowest point since 2007, prompting measures to curb further depreciation.
Crude Oil Rebounds:
After a three-day decline, crude oil exhibits a slight recovery following a recent 1% price drop. A dip in the dollar’s value has contributed to this resurgence, with Brent crude futures increasing by 0.49% to $84 per barrel, and WTI crude futures surpassing $80 per barrel.
Mixed Asian Market Trends:
The Asian markets portray mixed sentiments as GIFT NIFTY gains by 9.00 points, Nikkei declines by approximately 0.19%, Hangseng experiences a 0.67% drop, and Shanghai Composite records a 0.13% increase at 3,167.74. Taiwan’s market shows a 0.48% fall, while Kospi faces a 0.49% decline.
