– Asian shares dropped due to a slump in global tech stocks, leading investors to seek safer assets like short-dated bonds, the yen, and Swiss franc
– Chinese stocks were not supported despite a surprise rate cut by the country’s central bank
– Market volatility increased, with futures implying a 100% chance of a Federal Reserve easing in September
– MSCI’s index of Asia-Pacific shares outside Japan lost 0.7%
– Nasdaq lost almost 4%, the worst one-day fall since 2022
– Yen and Swiss franc rose as safe-haven assets
– Markets are fully pricing in a rate cut from the Fed in September, with expectations for a total easing of 65 basis points in 2024
– Gold prices fell, while oil prices remained near six-week lows
– U.S. GDP data expected to show growth picking up in the second quarter
– Concerns about a slowing Chinese economy affecting oil demand