Global Market Insights: Key Developments and Their Impact

1

In the past three weeks, the global stock market value has evaporated by about $6.4 trillion. Market panic could disrupt financial systems, slow down lending, and eventually lead to a global recession. This has led to calls for the Fed to cut interest rates, with some suggesting action before the September policy meeting.

Analysis:

Impact on FX:Heightened market panic could strengthen the USD as a safe haven.

FX Pair:EUR/USD, USD/JPY, GBP/USD

Impact on Shares:

Global Market:Negative impact due to increased uncertainty.

Companies:General Market Indices

2

After Monday's global stock market crash, Japanese stocks surged from the opening on Tuesday, with the Nikkei 225 and Topix indices both rising around 11%. The Kospi index in South Korea rose more than 5%, and stocks in Hong Kong and mainland China also rebounded. Invesco's global market strategist Tomo Kinoshita believes Tuesday's rebound is a correction of Monday's overreaction.

Analysis:

Impact on FX:Positive sentiment could strengthen the JPY.

FX Pair:USD/JPY, EUR/JPY

Impact on Shares:

Asian Markets:Positive correction expected.

Companies:General Market Indices

3

A judge ruled that Google illegally monopolized the search market through exclusive agreements with companies like Apple, preventing other competitors from entering the market. Google paid $26 billion to ensure its search engine became the default option on smartphones and web browsers, continuously raising online ad prices without competition pressure.

Analysis:

Impact on FX:Legal uncertainty could weaken the USD.

FX Pair:EUR/USD, GBP/USD

Impact on Shares:

US Tech Sector:Negative impact on Google's competitors.

Companies:Alphabet Inc. (GOOGL), Apple Inc. (AAPL)

4

India's largest lender, State Bank of India (SBI), is expanding into wealth management to cater to the growing affluent population. SBI plans to deploy around 2,000 executives as client managers and focus on establishing relationships with small companies nationwide.

Analysis:

Impact on FX:Positive economic activity could strengthen the INR.

FX Pair:USD/INR, EUR/INR

Impact on Shares:

Indian Market:Positive impact on financial sector stocks.

Companies:State Bank of India (SBIN.NS)

5

Elon Musk's social network X (formerly Twitter) will close its San Francisco office, ending nearly 20 years of operations in the city. Employees will be relocated to offices in San Jose and Palo Alto, marking the end of X's long-term relationship with San Francisco.

Analysis:

Impact on FX:Relocation could stabilize the USD.

FX Pair:EUR/USD, USD/JPY

Impact on Shares:

US Market:Potential impact on tech sector stocks.

Companies:X (formerly Twitter), Tesla Inc. (TSLA)

6

Palantir Technologies Inc.'s stock rose in extended trading after the company raised its annual profit forecast due to continued demand for its AI software. CEO Alex Karp highlighted the importance of US military business.

Analysis:

Impact on FX:Positive corporate outlook could strengthen the USD.

FX Pair:EUR/USD, GBP/USD

Impact on Shares:

US Market:Positive impact on tech sector stocks.

Companies:Palantir Technologies Inc. (PLTR)

7

Bitcoin dropped more than 16% on Monday due to global market risk aversion but rebounded slightly on Tuesday, briefly surpassing $56,000. Despite the rebound, traders remain concerned about the economic environment and Middle East tensions.

Analysis:

Impact on FX:Market volatility could strengthen safe-haven currencies like the USD.

FX Pair:BTC/USD, EUR/USD

Impact on Shares:

Crypto Market:High volatility expected.

Companies:Bitcoin-related companies

8

Chinese electric vehicle maker Xpeng's subsidiary Xpeng Aeroht raised $150 million to develop and produce flying cars. The company plans to build a manufacturing facility in Guangzhou and start presales in Q4 2024.

Analysis:

Impact on FX:Positive innovation news could strengthen the CNY.

FX Pair:USD/CNY, EUR/CNY

Impact on Shares:

Chinese Market:Positive impact on tech and auto sector stocks.

Companies:Xpeng Inc. (XPEV)

9

San Francisco Fed President Mary Daly stated that the US labor market is slowing down, suggesting that the Fed should start cutting interest rates in the coming quarters, but noted that the market hasn't deteriorated significantly yet.

Analysis:

Impact on FX:Rate cut expectations could weaken the USD.

FX Pair:EUR/USD, USD/JPY

Impact on Shares:

US Market:Potential positive impact on broader market sentiment.

Companies:General Market Indices