 Unexpected developments from Asia significantly influenced global financial markets last week. China's surprise stimulus measures invigorated investor sentiment, leading to substantial gains in Chinese and Hong Kong equities, as well as strengthening Chinese Yuan. This positive shift boosted commodity-linked currencies, with New Zealand Dollar and Australian Dollar emerging as the top performers for the week. Adding to the drama in Asia, the unforeseen outcome of the Liberal Democratic Party leadership election in Japan resulted in sharp appreciation of Japanese Yen, making it the third-best performing currency. Markets quickly began speculating on whether his government would support more rate hikes from BoJ, further fueling Yen strength. In contrast, Europe’s economic struggles were highlighted by disappointing PMI data, which reignited expectations of an ECB rate cut in October. As a result, Euro tumbled, marking it as the worst-performing major currency for the week. Across the Atlantic, Dollar also lost ground, weighed down by inflation data that cemented expectations for additional policy easing by Fed. Additionally, the record-breaking performance of DOW weighed on the greenback. Meanwhile, British Pound, Swiss Franc, and Canadian Dollar showed mixed performances.... |
