Premarket: Stocks, dollar sag as data point to flagging U.S. economy

Global shares eased on Tuesday with investors considering the prospect that the U.S. economy’s “exceptionalism” may be starting to unwind as manufacturing activityIn India, share markets sold off sharply after early vote counting showed Prime Minister Narendra Modi’s Bharatiya Janata Party-led alliance was not headed for a landslide win as predicted.

“Most people would have assumed that where the fed funds rate is right now is in restrictive territory. That is bearing down on underlying inflation and bearing down on some of the dynamism in spending,” he said. In Asia, Japan’s Nikkei closed down 0.22 per cent at 38,837.46, while Hong Kong’s Hang Seng rose 0.22 per cent to 18,444.11.

A Modi victory had been expected to be positive for the country’s financial markets, according to analysts, on the hope India will undertake further economic reform.The Nifty index dropped as much as 8.5 per cent before recovering some of those losses, while BSE index dropped was down 5 per cent. Both indexes had touched all-time highs on Monday.

“What does that mean for the Fed? I think all data points to one interest rate cut later in the year, potentially in December. If the data moves quicker in a different direction than expected that cut could be moved forward to September.” “The sharper move at the long-end is a sign that weaker manufacturing data is unlikely to shift the dial on Fed rate cuts near term, but is perhaps a signal of the market’s view of neutral interest rates as US economic exceptionalism fades,” Westpac economist Jameson Coombs said in a note on Tuesday.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Premarket: Stocks rally as investors eye interest rate movesBond yields drop as ECB set to cut Thursday and possibly the Bank of Canada on Wednesday
Source: globeandmail - 🏆 5. / 92 Read more »

Premarket: Stocks catch a ride higher with Nvidia; investors cautious over ratesWall Street futures pointed higher after closing down yesterday
Source: globeandmail - 🏆 5. / 92 Read more »

Premarket: Stocks idle ahead of Fed’s preferred inflation figureGreenback steady against peer currencies ahead of inflation data
Source: globeandmail - 🏆 5. / 92 Read more »

Premarket: Stocks, bonds steady after rate angst selloffThe latest slowdown in the global risk rally has come on the back of data pointing to lingering inflationary pressures and a flood of bond sales lifting yields
Source: globeandmail - 🏆 5. / 92 Read more »

Premarket: Global stocks wilt after U.S. bond yield jump as rate cut doubts resurfaceU.S. yields climbed after consumer confidence data came in stronger than expected and Fed’s Neel Kashkari said further rate hikes were still a possibility
Source: globeandmail - 🏆 5. / 92 Read more »

Premarket: Global stocks slide as rate worries dent risk appetiteRobust U.S. and German economic data bolstered prospects of interest rates staying higher for longer
Source: globeandmail - 🏆 5. / 92 Read more »