Amid economic uncertainty linked to elections and a strengthening US dollar globally, the Pakistan Stock Exchange (PSX) experienced negative trading trends on Tuesday. The local currency, the rupee, depreciated by 26 paisa against the US dollar during early trading, aligning with international currency market movements.
As of 12:19 pm PST, the benchmark KSE-100 Index registered a loss of 451.10 points, or 0.70%, settling at 63,818.27 after briefly dropping to 63,397.94.
Globally, Asian shares reached a one-month low, with US stock futures declining and the dollar gaining ground. The hawkish remarks from central bankers dampened expectations for interest rate cuts, contributing to the bearish sentiment. MSCI’s Asia-Pacific shares outside Japan fell 1.4%, while Hang Seng, Nikkei, Kospi, and ASX experienced declines.
In the US, S&P 500 futures and Nasdaq 100 futures were lower in Asia trade. Federal Reserve Board Governor Christopher Waller’s upcoming speech on the economic outlook is anticipated to impact market dynamics. The global economic landscape is further influenced by political developments, including Donald Trump’s victory in the Iowa Republican presidential contest.
The euro faced pressure against the dollar, and Australian and New Zealand dollars depreciated. Gold steadied at $2,048 an ounce, while Brent crude futures remained steady at $78.26 a barrel.
Economic indicators, such as Australian consumer sentiment and Japan’s wholesale inflation, also played a role in shaping market trends. Bitcoin maintained stability at $42,700 amid the complex economic environment.
