Global Markets Wobble Amid Rate Cut Speculations and Trade Uncertainties

The global markets witnessed a mixed performance as Asian shares dipped, influenced by profit-taking particularly in Japanese tech stocks. Meanwhile, Chinese equities remained buoyant, driven by optimism about domestic AI advancements. U.S. markets experienced thin trading due to a holiday, with minor gains in Wall Street and European share futures.

The U.S. dollar faced pressure with impending economic data releases, including manufacturing, services, and labor numbers, leading up to the August payrolls report. Analysts suggest the Federal Reserve might cut interest rates soon, with futures indicating a high probability. The anticipation for lower rates has supported Wall Street's upward trajectory, although September remains historically challenging for the S&P 500.

Regional markets exhibited varied performances. Japan's Nikkei dropped due to profit-taking in its tech sector, while South Korea and Indonesia experienced declines. Conversely, Chinese stocks continued to rally, with Alibaba experiencing a substantial one-day surge. The ongoing uncertainties surrounding U.S. trade policies and upcoming court rulings add complexity to the economic landscape, impacting global trade agreements and market stability.

(With inputs from agencies.)