Market Overview July 21: Strong Rebound in Asia — Nikkei and KOSPI Rose Over 3%, Gold Surged Above $4050, and Brent Dropped to $88.5

Today, global financial markets remain influenced by geopolitical tensions, trade restrictions, and expectations of important macroeconomic data. After strong volatility at the beginning of the week, investors are assessing the likelihood of de-escalation of the conflict in the Middle East and preparing for the publication of corporate reports from major American companies.

Decline in the USA and Pressure on European Indices

USA: American indices finished the previous session in the red zone, however, futures are trading moderately higher as investors' attention shifts to the upcoming quarterly reports from Alphabet, Tesla, and IBM.

Europe: European markets are trading predominantly in the negative: Euro Stoxx 600 fell to 639.6 (-0.3%), and the British FTSE 100 lost 0.71% (10 524). Pressure remains due to political uncertainty in the UK and rising government bond yields.

Strong Rebound in Asia: Nikkei Gained 3%, KOSPI Rose by 3.56%

After a deep drop the day before, Asian markets showed strong recovery dynamics. The Japanese Nikkei 225 rebounded nearly 3%, the South Korean KOSPI rose by 3.56%, the Chinese CSI 300 increased by 1.5%, and the Hong Kong Hang Seng added 2.4%.

Oil Correction, Gold Rally, and US Gas at a Minimum

Oil: Oil prices corrected downwards following reports of a possible resumption of negotiations between the USA and Iran. Brent is trading in the range of $88.5–88.8 per barrel, WTI around $82.9 per barrel.

Metals and Gas: Gold rose above $4,050 per ounce, and silver surpassed $58 per ounce due to sustained demand for safe-haven assets. Natural gas futures in the USA fell to $2.85 per MMBtu, marking a two-month low.

Strong Dollar and Rising Government Debt Yields

Currency Market: The Dollar Index (DXY) is holding around the 101 mark. The EUR/USD pair is trading at 1.1414, GBP/USD at 1.3431, and USD/JPY is stabilizing around 162.5. The dollar is supported by safe-haven demand and high bond yields.

Bonds: The yield on 10-year US Treasury bonds is 4.59%, while 10-year UK government bonds yield 5.03%. Yields on European bonds have risen by an average of 2–3 basis points.

Key Events of the Day (Kazakhstan Time, UTC+5):

Main Risks:

Conclusion for traders: Markets remain extremely sensitive to any geopolitical news and macroeconomic statistics. Increased volatility persists in oil, precious metals, the currency market, and the tech sector. Today, market participants are particularly focused on US employment data, the ZEW index in Europe, and the evening API statistics on oil stocks.