Asia markets trades lower looking for guidance from central bankers

Asian markets are trading lower this morning as their US competitors are in a negative zone due to fears of recession.

Japan’s Nikkei 225 fell 0.57%, while Topix weighed 0.79%.

The yen is trading at 106.37 against the dollar, weakening from levels below 106 from the previous week.

The session in Asia followed losses in the US and Europe on Tuesday, where Italy’s emerging political crisis made a breakthrough in investor sentiment.

Italian Prime Minister Guiseppe Conte has announced his intention to resign – he was pressured after one of the country’s deputy prime ministers, Mateo Salvini, called early elections.

Markets are trading in a wave of information, awaiting guidance from central bankers at the end of the week.

The US Central Bank lowered its interest rate by a quarter in July for the first time in a decade. Bank President Jerome Powell will make a statement Friday in Jackson Hole, where he is expected to shed more clarity on Fed’s future plans.

His comments will be closely monitored for further interest rate cuts, such as preventive action against the threat of a trade war. Traders suspect that the central bank will again cut interest rates in the country in September. By how much or whether it is just speculation or not we hope Powell explains.

 Trader Aleksandar Kumanov

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance