Asia-Pacific markets may see a mixed open amid regional shifts in global market sentiment. US stocks closed lower in New York, giving up early gains after Apple, Inc. is said to slow hiring plans for next year, according to a Bloomberg report. The benchmark S&P 500 index closed 0.84% lower. IBM fell in after-hours trading after lowering guidance due to foreign-exchange rates. Goldman Sachs provided a bright spot, with the bank gaining more than 2% on impressive trading revenues.
The US Dollar Index fell over 0.5%, weighed down by a stronger Euro and British Pound. The Cable pair faces UK inflation and jobs data in the coming days. Meanwhile, traders scaled back their bullish bets on the USD for a second week, according to CFTC data released Friday for the week ending July 12. The CFTC data also revealed the largest short positions on gold since 2018 among speculators, suggesting that traders are abandoning the asset as the Fed remains committed to fighting inflation.
As per the market sentiment, the Unemployment Rate is expected to remain stable at 3.8%. No downside deviation in the jobless rate will impact the market participants’ sentiment. The Bank of England (BOE) is bound to bring price stability, and a stable jobless rate won’t allow the central bank to tighten policy further unhesitatingly.
On another news, the Average Hourly Earnings data will be important. The economic data is expected to increase minutely by ten basis points above the prior print of 4.2%. In comparison with the responsiveness of the inflation rate, an improvement in earnings data by peanuts will dampen the market moods. The households will face more impact on their paychecks, escalating recession fears.
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