Market Watch APAC
The US Beige Book was released overnight and showed some strong data on industrial production, however this didn’t shift the markets focus on pending rate cuts.
US equity markets were once again highly volatile and different indices provided varied outcomes with the Nasdaq 100 falling 2.8%, its worst day since 2022 as markets focus on possible tighter US controls on chip sales to China. The S&P 500 was caught in the crossfire and fell 1.4%, however the Dow rallied .6% and the broad-based Russell 2000 gained .38%.
The USD sold off on the Beige Book with USD/JPY falling from 158 to sub-156. Across the pond GBP had an impressive rally to breach 1.3000 on the back of UK inflation data which suggested that the BOE may have to wait a little while yet before being able to cut rates.
Locally, we have labour market data today which will be closely watched for insight into the next move by the RBA. The AUD was quiet overnight, falling slightly, but within recent ranges.
