South Korean stocks experienced a significant downturn on Friday, marking their steepest weekly decline in over three months. This slump was triggered by a sell-off in U.S. tech shares, prompting investors to cash in on recent gains. The Kospi index saw a sharp drop, even triggering a circuit breaker. Concerns over AI spending and who will bear the costs weighed heavily on the market, overshadowing positive demand signals.
US Federal Reserve is expected to hold rates steady at its July meeting despite inflation hitting a three-year high. Markets see a possible pause now, but still price in a higher chance of a rate hike in September as core inflation remains elevated.
The US economy showed stronger growth than initially thought in the first quarter, reaching an annual rate of 2.1 percent. This upward revision was largely due to a decrease in imports, which positively impacts GDP calculations. Key drivers of this expansion included investments, exports, government spending, and consumer spending, with the booming Artificial Intelligence sector playing a significant role.
US unemployment claims saw a sharper-than-expected drop last week, signaling continued labor market strength. Despite this positive sign, a rise in continuing claims suggests employers are cautious about hiring, potentially impacting job seekers, especially recent graduates facing competition from AI. The median unemployment duration has also lengthened, indicating a tougher job search for many.
Asian markets saw a dip, led by a pullback in heavyweight chip stocks after a strong rally. US futures remained steady following a volatile session on Wall Street, where tech giants like Apple experienced significant declines. Investors are closely watching the sustainability of high tech valuations amid concerns over AI spending and potential interest rate adjustments by the Federal Reserve.
Daniel Kahneman’s insight highlights how anchoring to purchase price distorts investment decisions. Investors often hold losing stocks and sell winners too early. The piece emphasises focusing on future returns, fundamentals and portfolio role rather than past prices, reinforcing that diversification naturally includes both winners and losers.
The US dollar is on a remarkable rise, approaching its most significant monthly increase in a year, fueled by expectations of upcoming rate hikes from the Federal Reserve. This surge has propelled the euro to a 13-month low and pushed the pound and yen down to seven-month and 40-year lows, respectively.
Indian stock markets closed with modest gains on Sensex monthly expiry day, as both indices erased significant intraday advances. Sensex added 109 points to 77,100.47, and Nifty 50 climbed 34 points to 24,056. Strong performances from IndiGo, M&M, and Maruti Suzuki bolstered the gains, while Power Grid shares saw notable declines. The broader market, however, dipped into the red.
Despite facing global economic challenges, Indian housing sales posted a staggering 19% increase, exceeding 1.12 lakh units from April to June. PropEquity data highlights significant demand in key urban centers including Bengaluru, Mumbai, and Navi Mumbai. Moreover, a notable 43% uptick in new property supply reflects growing market optimism, driven by solid domestic demand and economic resilience, even in the face of geopolitical tensions.
Warning! Information Posting in this website is only for educational purpose. We are not responsible for losses incurred in Trading based on this information.