Key Takeaways
- 💱 Aussie and kiwi dollars struggled after China’s rate cuts
- 📉 Australian dollar fell to a three-week low, New Zealand dollar hit weakest level since early May
- 🇨🇳 China’s rate cuts signal intent to boost growth in the economy
- 💴 Yen rose ahead of BOJ policy meeting, dollar fell against yen to 156.32
- 🏦 Economists expect BOJ to keep rates on hold at the upcoming meeting
- 💵 Euro eased to $1.0889, sterling remained flat at $1.29305
- 🗳️ Market reaction to U.S. President Joe Biden’s decision to bow out of the election race was muted
- 🌐 U.S. politics may become a greater source of volatility for markets as the November election approaches
- 📉 Bitcoin fell 2% to $66,767, retreating from an over one-month high
- 💰 Sabadell reported a 34.5% increase in net profit to 483 million euros in Q2
- 📈 The bank aims for mid-single digit growth in its net interest income in 2024
- 💸 Sabadell raised shareholder returns to 2.9 billion euros
- 🏦 The bank’s return-on-tangible equity improved to 13.1%
- 🧮 Fully-loaded core tier-1 core capital ratio rose to 13.48%
- 💱 China surprised markets by lowering key interest rates, aiming to boost growth in the second-largest economy in the world.
- 📉 The Australian Dollar dropped to a three-week low, while the New Zealand Dollar hit its weakest level since early May.
- 🌏 The antipodean currencies, Aussie and Kiwi, are reflecting the realities faced by the Chinese economy and its policy decisions.
- 💲 Market reactions included subdued movements overall, with focus on upcoming central bank meetings in the US and Japan.
- 🇯🇵 The Yen received support from Tokyo’s interventions and traders looking ahead to the BOJ meeting in July.
- 💰 Aussie and kiwi dollars struggle after China’s rate cuts
- 💰 Yen gains ahead of Bank of Japan’s policy meeting
- 📉 Antipodean currencies drop after China’s interest rate reductions
- 🌐 Currency market moves subdued awaiting central bank meetings
- 🇺🇸 Dollar falls against yen, euro, and sterling
- 🗳️ Market reaction to Biden dropping out of the election race muted
- 📉 Bitcoin retreats from over one-month high
- 🛢️ Oil nears a six-week low as market awaits US stockpile outlook
- 📈 Canada’s main stock index led higher by financial, industrial, and utilities sectors
- 💱 Vodafone sells 10% stake in Vantage Towers to reduce debt
- 🇯🇵 Japanese authorities may intervene if euro-yen nears 180 level
- 🇺🇸 defamation suit against Fox News dismissed
- 💼 Harris took a risk walking away from the national settlement after the Great Financial Crisis
China’s Rate Cuts Impact Global Financial Markets
With China’s unexpected decision to lower key interest rates, the global financial markets experienced significant movement. The Aussie and kiwi dollars struggled as a result, hitting multi-week lows. This move signaled China’s effort to boost growth in its economy, impacting not only its own currency but also affecting other currencies like the Japanese yen, which rose ahead of the upcoming BOJ policy meeting.
While the antipodean currencies faced challenges, the euro, dollar, and sterling saw varied movements. The euro eased slightly, while the dollar fell against the yen, euro, and sterling. Market reactions were overall subdued, with focus shifting to upcoming central bank meetings in the US and Japan.
On the company front, Sabadell reported strong financial results, with increased net profits and plans for growth in net interest income. The bank also raised shareholder returns significantly and saw improvements in its return-on-tangible equity and core capital ratio.
As political developments unfold with U.S. President Joe Biden’s decision to step back from the election race, there is anticipation for increased market volatility as the November election approaches. With these various economic and political factors at play, the global financial landscape continues to be dynamic and uncertain.