Japan's Nikkei Lifts Asia, Europe Gains; Crude Oil And Dollar Advance - Global Markets Today While US Slept

On Tuesday, August 6, U.S. stock markets closed higher, with the S&P 500 and Nasdaq gaining as investors returned after a major sell-off. This rebound was driven by Federal Reserve officials’ comments easing recession fears.

Central bank policymakers downplayed concerns that weak July job data signals a recession but suggested that interest rate cuts might be needed to avoid one.

In economic data, the U.S. trade deficit in June narrowed to $73.1 billion from $75 billion in May, though analysts had expected a $72.5 billion gap. Exports rose by 1.5% to $265.9 billion.

All major sectors in the S&P 500 closed higher, with real estate and financials seeing the largest gains.

The Dow Jones Industrial Average was up 0.76% and closed at 38,997.66. The S&P 500 gained 1.04%, ending the day at 5,240.03, and the Nasdaq Composite rose 1.03%, finishing the session at 16,366.86.

Asian Markets Today

• On Wednesday, Japan’s Nikkei 225 closed higher by 2.51%, ending the session at 35,120.00, with gains in the Rubber, Financial Services and Insurance sectors.
• Japanese stocks ended higher after a volatile week of significant losses and gains. BOJ Deputy Governor Shinichi Uchida reassured investors there would be no immediate rate hikes amid market volatility, leading to a market rebound. Uchida’s comments eased recession fears, boosting investor confidence.
• Australia’s S&P/ASX 200 gained 0.25%, ending the day at 7,699.80, led by gains in the A-REITs, Utilities, and Telecoms Services sectors.
• India’s Nifty 50 rose 1.35% to 24,315.25, and the Nifty 500 was up 1.89%, closing at 22,866.55.
• China’s Shanghai Composite was up 0.09%, ending the session at 2,869.83, while the Shenzhen CSI declined 0.04%, closing at 3,341.49.
• Hong Kong’s Hang Seng ended the session higher by 1.38% at 16,877.86.

Eurozone at 06:15 AM ET

• The European STOXX 50 index gained 1.68%.
• Germany’s DAX rose 1.5%8.
• France’s CAC was up 1.55%.
• U.K.’s FTSE 100 traded higher by 0.97%.

Commodities at 06:15 AM ET

• Crude Oil WTI was trading higher by 1.23% at $74.09/bbl, and Brent was up 1.26% at $77.44 bbl.
• Oil prices edged higher on Wednesday, with Brent near seven-month lows due to weak demand and U.S. recession fears. Middle East tensions supported prices, with Brent crude rising slightly and WTI also seeing an uptick.
• Natural Gas gained 2.29% to $2.056.
• Gold was trading higher by 0.15% at $2,435.00, Silver fell 0.68% to $27.025, and Copper slid 1.29% to $3.9745.

US Futures at 06:15 AM ET

Dow futures were up 0.82%, S&P 500 futures gained 1.13%, and Nasdaq 100 Futures rose 1.35%.

Forex at 06:15 AM ET

• The U.S. dollar index gained 0.31% to 103.29, the USD/JPY rose 2.01% to 147.20, and the USD/AUD declined 0.71% to 1.5231.
• The U.S. dollar rose Wednesday as the yen slumped after the Bank of Japan signaled no rate hikes. Adjusted Fed rate cut expectations and market stress influenced the dollar’s rebound.

Photo by Pavel Bobrovskiy via Shutterstock