Asian Pacific stock indices end mixed

US stock indices were mostly lower by Wednesday’s close, with only the Dow Jones Industrial Average managing to break even while the rest of the majors struggled. The NASDAQ bore the brunt of the selloff and was down nearly 2% at the session lows. Nvidia and Palantir dropped sharply, and this weighed heavily on other major tech stocks. But equities found support just before the European close and managed to recoup a large chunk of earlier losses.

Source: TN Trader

The weakness came as big tech names and chipmakers remained under heavy pressure, with Amazon, Apple, and Alphabet all slipping more than 1%. Broadcom fell 1.3%, Intel tumbled 7%, and Nvidia was volatile—down more than 3% at one stage—before ending close to unchanged.

The bounce-back came even as the release of the minutes from the Federal Reserve’s July meeting added to investor caution. Policymakers expressed concerns about the resilience of the jobs market and stubborn inflation pressures. Notably, two Federal Reserve governors voted for a rate cut—the first such dissent since 1993. 

US stock index futures had a negative bias in this morning’s early trade, indicating some nervousness, particularly ahead of tomorrow’s key speech from Fed Chair Jerome Powell on the second day of the Jackson Hole Economic Symposium.

European stock indices were lower across the board in early trade on Thursday. Traders kept a close eye on US stock index futures for leadership, while a clutch of Manufacturing and Services PMIs from across the Eurozone were something of a mixed bag. Traders reacted to news of a larger-than-expected drop across the UK’s manufacturing sector while services continue to expand. 

Sterling rallied on the news before it pared gains, while there was a slight drop in the FTSE 100. It’s worth considering yesterday’s outperformance of the UK’s major stock index, which rallied sharply to a fresh all-time high even as US tech stocks sold off sharply. Investors switched out of tech and other growth stocks, preferring the relative safety of many of the value plays found in the UK index. 

Source: TN Trader

Some profit-taking crept in this morning, but most traders are sitting on their hands ahead of US Federal Reserve Chair Jerome Powell’s key speech tomorrow at the Jackson Hole Economic Symposium.

Currency markets were little changed in early trade this morning. The US dollar was flat as traders seem unwilling to add to their exposure ahead of Fed Chair Jerome Powell’s key speech tomorrow. While FX was largely featureless, both the Japanese yen and Swiss franc, the two currencies most often sought as safe havens, drifted lower. 

That could suggest a slightly more risk-friendly environment, although both currencies were firmer yesterday as equities in the tech sector took a hit. Elsewhere, the major pairs held in tight ranges.

Gold was a touch weaker overnight, and once again stuck below intermediate resistance around $3,350. But it had a strong session yesterday, closing up around 1% as traders sought out safe havens as the US tech sector sold off. Gold has only given back a fraction of yesterday’s gains, even after tech stocks recovered off their lows. But it seems likely that gold will continue to be rangebound ahead of Jerome Powell’s key speech tomorrow.

Source: TN Trader

Silver also bounced sharply yesterday, and like gold, has given back some of those gains this morning. It continues to hover beneath $38 per ounce, and as with gold, it seems unlikely that there will be any significant movement ahead of Powell’s speech tomorrow.

Source: TN Trader

Crude oil was firmer in early trade this morning, adding to gains made yesterday. This has seen front-month WTI push back above $63 per barrel to hit its highest level in nine days. The move was supported by a sharper-than-expected US inventory draw of six million barrels last week. 

The data has provided a short-term cushion for prices, though traders remain cautious and reluctant to call a sustained turnaround. Sentiment is still fragile, with participants looking for stronger signals of improving demand before committing further. Despite this, the daily MACD has curled up a touch, suggesting that the short-term momentum is pointing up.

Source: TN Trader

Natural gas markets continue to struggle, following Tuesday’s sharp sell-off, which saw prices slump over 4%. Gas has yet to recover from this selling onslaught, although prices managed to steady yesterday and were a touch firmer in early trade this morning. 

According to the daily MACD, the market is relatively oversold at current levels. Despite this, buyers have yet to return in any meaningful way. Traders are watching closely for today’s inventory release, which could act as a near-term catalyst.

Cryptocurrency markets retreated again overnight. Bitcoin was down around 1% in early trade on Thursday, and the daily MACD has fallen sharply back to neutral levels. Despite this, there may be some light support around $112,000, which, should it hold going into the weekend, may strengthen some bullish resolve. 

Ether’s daily MACD suggests a market which is still overbought. Yet relatively, it continues to hold up better than Bitcoin. If Ether were to fall further, the first significant level of support comes in around $4,000. 

Market volatility eased slightly in overnight trading, with the VIX edging lower after a brief surge the day before. On Wednesday, the index spiked as tech stocks sold off sharply, but conditions calmed as markets stabilised late in the session.

The modest pullback leaves volatility still elevated compared to last week, reflecting an undercurrent of investor caution as earnings season winds down and attention turns to central bank commentary at Jackson Hole.

US equities remain under pressure. The rotation out of high-flying growth names continues, but many view it as a temporary adjustment rather than a structural shift. Fed minutes confirmed ongoing concerns about inflation, yet markets remain confident in a rate cut next month, with odds above 80%.

The dollar has steadied, gold remains rangebound, and oil shows tentative signs of recovery. Attention now turns to today’s heavy slate of global PMIs, US jobless claims, the Philadelphia Fed index, housing data, and remarks from Fed Chair Jerome Powell at Jackson Hole tomorrow.