Home Market News Global Markets Plunge as Wall Street Suffers: The World Reacts with Mixed Emotions

Global Markets Plunge as Wall Street Suffers: The World Reacts with Mixed Emotions

0
Global Markets Plunge as Wall Street Suffers: The World Reacts with Mixed Emotions
display stock market charts

loveguli/E+ via Getty Images

Japan witnessed a steep decline in its equity market with a 1.37% drop. This drop follows the revision of Japan services and composite PMI downward in November.

Meanwhile, over in China, the stock market fell by 1.60%. However, it’s not all bad news as China services and composite PMI showed slight improvements in November.

In an unexpected turn of events, Moody’s affirmed China’s credit rating at A1 on December 5th but revised the outlook from ‘stable’ to ‘negative.’

Hong Kong also faced significant losses, experiencing a downfall of 2.49% in its equity market.

Retail sales in Singapore took a hit, dropping by 0.1% year-on-year in October 2023, marking the first decline since January.

South Korea’s economy remained stagnant with a 0.6% expansion quarter-on-quarter in the September quarter of 2023, reflecting the same pace as the prior quarter.

India, however, saw a glimmer of hope with a 0.40% increase in its equity market, while Australia suffered a setback with a 0.89% decline. The Reserve Bank of Australia maintained its cash rates at 4.35% during its final meeting of the year as widely expected. Additionally, the Judo Bank Australia Services PMI fell from 47.9 to 46 in November 2023, according to final readings.

The U.S. market experienced a downturn too. All three major indexes ended lower, and Treasury yields rose as bonds sold-off. These movements occurred after a significant rally that had seen Wall Street’s benchmark S&P 500 notch a 2023 closing high on Friday.

According to the CME FedWatch tool, markets are now pricing in a ~50% chance of the Fed delivering a 25 basis point rate cut in March 2024, significantly up from 21% last Monday.

U.S. stock futures traded in negative territory with Dow -0.23%, S&P 500 -0.38%, and Nasdaq -0.56%.

What’s ahead: The session will feature the release of Services PMI numbers from US, European countries and UK.

Currencies: JPY:USD, CNY:USD, AUD:USD, INR:USD, HKD:USD, NZD:USD.