The July 17 Federal Reserve release of its Beige Book says the American economy and employment situation will expand moderately.
It also emphasizes the policy expectations for interest rate cuts to overcome uncertainties.
However, the Fed’s optimism on the US economy overshadows the overall decline in the US market. On the same day, the Dow fell 0.42% to close at 27219.85, the S&P 500 fell 0.65% and Nasdaq 0.46%.
We also witnessed the decline of three major European stock indices. The German DAX by 0.72%, the French CAC40 index 0.76%, and the UK FTSE 100 index 0.55%. The downturn in the European and American stock markets also caused a callback in the Asian market the following day.
On July 18, the Nikkei 225 index fell 1.97%, the Korean KOSPI200 index fell 0.3%, the Hong Kong Hang Seng Index fell 0.46%. As for China’s A-share market, the Shanghai Composite Index fell 1.04%, Shenzhen Component Index fell 1.58%, and ChiNext fell 1.66%.
Not sparing the commodity market, crude oil prices fell sharply. Gold as a safe-haven asset is the only one rising against the trend, hitting a new six-year high.