Il Nuovo Postiglione - Stock markets mostly drop, yen gains after 38-year low

NYSE - LSE

CMSC	-0.53%	20.81	$
RIO	0.42%	103.27	$
RELX	-3.21%	35.51	$
BP	0.52%	43.81	$
RYCEF	0.7%	19.92	$
RBGPF	0%	70	$
BTI	-1.12%	55.35	$
BCE	-0.59%	23.67	$
NGG	-0.06%	78.12	$
GSK	-1.96%	49.89	$
CMSD	-0.34%	20.69	$
BCC	2.64%	79.21	$
VOD	1.89%	16.9	$
JRI	-0.58%	12.14	$
AZN	-1.27%	162.7	$

Stock markets mostly drop, yen gains after 38-year low

ECONOMY 27.06.2024

Stock markets mostly drop, yen gains after 38-year low / Photo: Stefani Reynolds - AFP

Major stock markets mostly dropped Thursday as Europeans gears up for key elections, the US awaits inflation data and Japan contemplates measures to strengthen the yen.

Text size:

The Japanese currency edged up against the dollar after hitting a 38-year low Wednesday, putting investors on alert for a possible intervention by Japanese authorities.

The Japanese unit's latest retreat came as uncertainty surrounded the Federal Reserve's timetable for cutting interest rates, and the Bank of Japan's caution in tightening monetary policy.

Traders sold equities as tech firms face pressure amid concerns that a long-running rally in the sector may have been overdone.

Investors were meanwhile awaiting outcomes in French and British general elections due over the next week.

"Today sees the US economy come into sharp focus, with the final GDP and core durable goods orders data released ahead of tomorrow’s crucial core PCE inflation release," noted Joshua Mahony, chief market analyst at Scope Markets.

"Signs of weakness in the jobs market have started to spread through alternate areas of the economy, with yesterday's new home sales figure falling to a 2024 low."

A forecast-busting read on the PCE index, the Fed's favoured gauge of inflation, could push back expectations for a rate reduction and put further upward pressure on the dollar.

In Japan, vice finance minister Masato Kanda said this week that authorities were keeping a close eye on movements in foreign exchange markets and were ready to step in with yen support 24 hours a day.

Their determination was put to the test after the yen fell to 160.87 per dollar late Wednesday -- its weakest since 1986 -- as US Treasury yields spiked.

Analysts say it is possible traders will keep pushing the envelope to see at what point the government will act, with some saying the unit could hit 170.

In Europe, France's political future was up in the air with the far right surging in polls but other forces fighting to the end three days before a high-stakes parliamentary vote.

It comes ahead of a UK national vote on July 4, with the right-wing Conservatives led by Prime Minister Rishi Sunak on course to lose power to the centre-left Labour party.

- Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.3 percent at 8,202.55 points

Paris - CAC 40: DOWN 0.5 percent at 7,570.40

Frankfurt - DAX: UP 0.2 percent at 18,181.83

EURO STOXX 50: DOWN 0.1 percent at 4,913.02

Tokyo - Nikkei 225: DOWN 0.8 percent at 39,341.54 (close)

Hong Kong - Hang Seng Index: DOWN 2.1 percent at 17,716.47 (close)

Shanghai - Composite: DOWN 0.9 percent at 2,945.85 (close)

New York - Dow: FLAT at 39,127.80 (close)

Dollar/yen: DOWN at 160.46 yen from 160.73 yen on Wednesday

Euro/dollar: UP at $1.0704 from $1.0680

Euro/pound: UP at 84.60 pence from 84.57 pence

Pound/dollar: UP at $1.2651 from $1.2625

Brent North Sea Crude: UP 0.5 percent at $85.66 per barrel

West Texas Intermediate: UP 0.4 percent at $81.20 per barrel

A.Ferrara--INP

Featured

Bangladesh measles toll nears grim 1,000-child mark

Bangladesh's deadliest measles outbreak in decades is nearing the grim milestone of 1,000 child deaths, as a devastating epidemic sweeps through the country and crowded hospital wards fill with struggling babies.

Bolivia farmers return to streets over diesel price hikes

Several hundred coca farmers and supporters of former Bolivian president Evo Morales demonstrated in the central city of Cochabamba on Friday over the government's doubling of diesel prices, AFP reporters said.

S&P Revises Outlook on Freedom Holding Corp. and Core Subsidiaries to Positive

S&P Global Ratings has revised the outlook on the long-term credit ratings of Nasdaq-listed Freedom Holding Corp. and its four core operating subsidiaries from “stable” to “positive,” while affirming their international credit ratings.

Moody’s Assigns First-Time Insurance Financial Strength Ratings to Freedom Insurance and Freedom Life

Moody’s Ratings has assigned insurance financial strength ratings to two Freedom Holding Corp. (Nasdaq: FRHC) insurance subsidiaries for the first time. Freedom Finance Insurance JSC, operating as Freedom Insurance, received Ba1 local- and foreign-currency insurance financial strength ratings, while Freedom Life JSC received Baa3 ratings. Both carry stable outlooks.