Market Summary
US Payrolls Beat Expectations, Raising Fed Hike Bets: US non-farm payrolls rose by 162,000, well above expectations of 55,000, strengthening expectations that the Federal Reserve could raise interest rates at its September meeting. The stronger-than-expected labour market data prompted a sharp appreciation in the US dollar and weighed heavily on gold, with XAU/USD falling 2.35% immediately following the announcement. Markets are now looking ahead to Friday’s US inflation data, which could provide the final signal ahead of the Fed’s policy decision this month. XAU/USD has extended its decline and is currently down around 0.85% at approximately $4,392 an ounce.
Oil Rises as Strait of Hormuz Tensions Escalate: Brent crude is up around 1.5% this morning at approximately $97.70 a barrel following an exchange of attacks between the US and Iran involving tankers in the Strait of Hormuz. The developments have renewed concerns about disruptions to one of the world’s most important energy corridors, adding a fresh geopolitical risk premium to crude prices.
KOSPI Surges as Korean Chip Stocks Rally: The KOSPI is up around 4.43% this morning, driven by strong gains in Korean semiconductor stocks. Market optimism surrounding a new model from OpenAI has boosted US chip stocks and spilled over into Asian markets, with investors increasing their exposure to Korean chipmakers amid expectations of continued strength in AI-related semiconductor demand. Nasdaq futures are up 0.19% this morning.
Yen Strengthens as BOJ Hike Bets Persist: The yen strengthened by around 0.2% to 156.01 per dollar as traders weighed the possibility of a Bank of Japan interest-rate increase this month. Speculation that Japan’s Government Pension Investment Fund could increase its allocations to domestic assets has also supported the currency, while investors remain alert to further changes in Japanese monetary policy.
Economic Calendar
- Eurozone GDP SA YoY
- Eurozone Employment YoY
Key Market Moves Today
- S&P 500 Futures: -0.06% (7,716.0)
- Brent Crude: +1.41% ($97.64)
- Bitcoin: -0.38% ($79,616)
- Spot Gold: -0.85% ($4,392)
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