Asian stock markets rose today, but there is limited gains due to the release of U.S. economy data as a benchmark for health of the world’s biggest economy, and before a likely U.S. rate cut later this month.
In European markets there is signs of volatility. Euro Stoxx 50 futures down 0.14%, but German DAX futures rose 0.04%, while France CAC 40 was flat.
By investors outlook regard to slower growth in the world’s second-largest economy and the impact of the U.S. and China trade war, Chinese CSI 300 index down 0.3%. During such outlook, release of Chinese June economic date on Monday decrease investors’ worries.
South Korea’s KOSPI up 0.4%, while Australian market down 0.1%, due to the dovish minutes from the Reserve Bank of Australia’s meeting and its rate cut.
Japan’s Nikkei stock index down nearly 0.7%.
Rate cut by U.S. will impact on the other major central banks. “A U.S. rate cut should make it easier for central banks in Asia to ease their policies, boosting domestic demand in the region,” said Yukino Yamada, strategist at Daiwa Securities.
It can be said that markets have priced in a 25% cut by the Fed at its meeting at the end of this month.