The global markets are reacting strongly to significant losses in equities, with today's market developments heavily influenced by the sharp declines in U.S. stocks. Yesterday, the S&P 500 fell by 2.1%, while the Nasdaq dropped by 3.25%, marking the largest losses since the peak of the carry-trade unwind on August 5. Both indices have continued their downward trend today and are expected to open lower. In commodities, gold remains under pressure, likely driven by sales to cover margin calls. After peaking last week at nearly $2,530 per ounce, the precious metal has dropped to $2,472 today. In the energy sector, West Texas Intermediate (WTI) crude oil for October delivery has plunged to nearly $69 a barrel. This decline comes as Libyan supply returns to the market and OPEC+ prepares to increase output next month, while demand is expected to weaken. Amid these developments, the U.S. dollar is showing a mixed performance.

Asia-Pacific Markets
In the Asia-Pacific region, last week saw the Japanese government upgrade its economic outlook for the first time in 15 months. Bank of Japan Governor Ueda reinforced this positive sentiment yesterday by reaffirming his commitment to further interest rate hikes, barring any unforeseen economic surprises.
In Australia, Q2 GDP growth was reported at 0.2%, in line with expectations, following a revised Q1 growth rate of 0.2% (up from 0.1%). Additionally, Australia's July household spending increased by 0.8%, offsetting June's 0.5% decline, with year-over-year growth now standing at 2.9%, up from 2.2%.
In currency movements, the U.S. dollar softened against the Japanese yen during the Asia-Pacific session, reaching a low near JPY144.75 before finding support in early European trading. Resistance is now seen around JPY145.50.
Meanwhile, the Australian dollar found some stability slightly below $0.6710 yesterday but fell to nearly $0.6685 in early local trading today.

European Markets
In Europe, the euro has seen a pullback after peaking slightly above $1.12 on August 26, reaching $1.1025 yesterday. It closed below its 20-day moving average for the first time since August 1 and is currently consolidating within yesterday's trading range.
The British pound also experienced a peak near $1.3265 on August 27 but has since eased, trading below $1.31 yesterday. However, it is holding steady today, with nearby resistance around $1.3150. A break below $1.3080 could suggest a further decline toward the $1.2965-$1.3000 area.

American Markets
In the U.S., today's economic data releases are likely to be a minor distraction ahead of Friday's national employment report. The Job Openings and Labor Turnover Survey (JOLTS) report, which tracks job openings, has been on a downward trend for over two years and is losing its impact, though it remains slightly elevated compared to pre-pandemic levels.
Meanwhile, the Bank of Canada is expected to announce its third interest rate cut of the year after reporting its July merchandise trade balance. The U.S. dollar strengthened against the Canadian dollar for the fifth consecutive session yesterday, with the greenback holding above CAD1.3530 and pressing against yesterday's high.