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4 Global Market Updates- 6 August, 2022

In this article, we have covered the highlights of global market news about the United States 10-year Treasury yield, European markets, Gold Declination, & Taiwan Stocks Report.

United States 10-year Treasury yield increases as employment growth exceed estimates.

The 10-year Treasury yield increased on Friday due to stronger-than-anticipated July employment data.

European markets

The yield on the 10-year Treasury was 2.83 percent at about 4:10 pm E.T., while the work on the 30-year Treasury note had increased by ten basis points to trade at 3.068 percent. The 2-year, meanwhile, increased 20 basis points to 3.242 percent. Prices and yields follow opposite trends.

According to the report, nonfarm payrolls increased by 528,000 last month, above Dow Jones’ prediction of 258,000. At the same time, average wages increased by 5.2 percent from the previous year to 0.5 percent for the month. The stronger-than-expected result revealed that the United States is probably not experiencing a recession.

The 10-year yield has been drifting downward recently due to concerns that the Fed’s rate hike campaign was pushing the economy into a recession. Friday’s move represents a reversal of that trend. According to FactSet, the 10-year yield decreased earlier this week to 2.50 percent, which is the lowest level since April.

Following a positive U.S. employment report, European markets closed lower; Rheinmetall is down 12%.

Stateside nonfarm payrolls rose by 528,000 in July, considerably above the 258,000 forecasts by Dow Jones and defying indications that the economic boom is waning.

The Bank of England increased interest rates by 50 basis points on Thursday, predicting that the economy would enter a recession in the fourth quarter and that U.K. inflation will reach a high of over 13 percent in October.

european-markets

ENGLAND — Following the release of important U.S. employment data that revealed surprising strength in the labor market, European markets ended the day down on Friday.

Provisionally, the pan-European Stoxx 600 declined by 0.8 percent at the close, immediately following the Bureau of Labor Statistics announcement. Compared to other major bourses and sectors, tech stocks fell by 2.4 percent.

This week’s market activity was flat as traders responded to a flood of corporate results. The previous session saw the European blue-chip index finish slightly above the flatline.

The Bank of England increased interest rates by 50 basis points on Thursday, predicting that the economy would experience a lengthy recession in the fourth quarter and that U.K. inflation would reach a high of over 13 percent in October.

Strong U.S. employment numbers alleviate recession worries, causing gold to decline by over 1%.

On Friday, gold prices declined, down over 1%, as upbeat U.S. employment data eased concerns about a recession and fueled optimism that the Federal Reserve would continue its aggressive tightening program.

U.S. gold futures were down 0.87 percent to $1,791.1, while spot gold dropped 0.92 percent to $1,774.97 per ounce.

Bullion suffers in a climate with high-interest rates because it pays no interest.

The unemployment rate in the United States fell to a pre-pandemic low of 3.5 percent in July, with firms hiring considerably more people than anticipated.

On the physical side, this week saw an increase in gold premiums in China due to safe-haven demand brought on by escalating tensions with the U.S. over Taiwan.

Asia markets are trading higher- as Taiwan stocks increase by 2% despite China’s military exercises.

After U.S. House Speaker Nancy Pelosi’s visit, investors could forget about China’s military exercises, which led to increased stock prices on Friday.

According to an NBC News report, Japan’s Defense Minister Nobuo Kishi said that Chinese missiles had fallen in Japan’s exclusive economic zone and described the military training exercises as a “severe concern.”

The Reserve Bank of India declared that interest rates would increase by 50 basis points to 5.4 percent.

Please click here for the Market News Updates from 5 Aug, 2022.

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