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Market Wrap: Stocks, Bonds, Commodities |
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On Monday, U.S. markets were closed for the Labor Day holiday.
In early Asian trading hours on Tuesday, U.S. stock index futures traded lower, dragged down by rallying oil prices.
In Europe, the DAX 40 dipped 0.15% and the FTSE 100 slipped 0.08%, while the CAC 40 closed 0.33% higher.
Oil prices advanced further, as the Financial Times reported that Saudi Aramco's Jizan oil facilities were hit on Monday. U.S. WTI crude futures rose 1.16 dollars (+1.27%) to 92.64 dollars a barrel, extending their winning streak to seven sessions.
Spot gold eased a further 23 dollars to 4,406 dollars an ounce.
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The yen surged against the dollar on Monday, with USD/JPY sinking 189 pips (-1.21%) to 154.35, breaking below 155 for the first time since February.
Traders priced in a higher probability of the Bank of Japan hiking interest rates next week after U.S. Treasury Secretary Scott Bessent urged Japan to raise rates to stem yen weakness.
Meanwhile, the market’s focus is turning to U.S. producer price data due Thursday and consumer price data due Friday ahead of the Federal Reserve’s policy decision next week.
In Europe, the European Central Bank is widely expected to increase its key interest rates by 25 basis points on Thursday.
Bitcoin slipped back below the key level of 80,000 dollars.
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In Asian trading hours, AUD/USD eased to 0.7208. Australia's NAB Business Confidence Index fell to -8 in August as expected.
On the other hand, China's exports rose 25.0% year-on-year in August as expected, while imports increased by 28.2% (vs +30.0% estimated).
Meanwhile, USD/JPY extended its slide to 153.20, its lowest level since February.
EUR/USD and GBP/USD were both little changed, at 1.1625 and 1.3535 respectively.
Gold rebounded to 4,425 dollars.
Bitcoin was broadly flat at 79,100 dollars.
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Germany's trade surplus for July is estimated at 16.5 billion euros.
France's trade deficit for July is expected at 6.0 billion euros.
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