Global Markets Roundup: 05 Apr 2024

On Friday, APAC equities witnessed a downturn as a result of hawkish rhetoric from certain Federal Reserve officials and escalating geopolitical tensions. This cautious sentiment prevailed in the markets due to the impending release of U.S. jobs data later in the day. Brent futures (BRN1!) remained above $90 a barrel, fuelled by concerns over potential disruptions in the supply chain due to prolonged conflicts in the Middle East, reaching a level not observed since October of the previous year. Geopolitical tensions intensified as Israel prepared for potential reprisals following its suspected involvement in the demise of Iranian generals in Damascus earlier in the week. Prime Minister Benjamin Netanyahu emphasised Israel's resolve to retaliate against any threats. In a subsequent conversation with Netanyahu, U.S. President Joe Biden hinted at conditioning support for Israel's military operations in Gaza on ensuring the safety of humanitarian workers and civilians.

The MSCI's broadest index of APAC shares outside Japan (MIAPJ0000PUS) retreated by 0.66%, mirroring a late decline on Wall Street as risk aversion gripped investors. Trading activity was subdued due to a public holiday in China. The Nikkei index NI225 in Tokyo fell by more than 2%, influenced in part by a strengthening yen and expectations of further interest rate hikes, along with continued verbal intervention by Japanese officials. In Hong Kong, the Hang Seng Index (HSI) edged 0.6% lower. In Europe, Europe Stoxx 50 Futures FESX1! trade 1.33% lower in the pre-market at 06:30 GMT.

In currency markets, the EURUSD and GBPUSD each fell 0.1%, and the USDJPY rose to a two-week high. The dollar strengthened against a basket of currencies DXY, rebounding from a two-week low recorded after a subdued U.S. services survey.

In the commodities market, Brent crude rose by 0.3% to $90.91 a barrel, while U.S. crude CL1! gained 0.09% to $86.67 per barrel. GOLD prices retreated from a record high, declining by 0.5% to $2,277.76 an ounce. The three-month LME copper HG1! contract trades 1.0% lower at $9,261.00 a ton.

May arabica coffee KC1! closed 3.15 cents higher at $2.0675 per lb. July London cocoa C2! ​​fell 0.8% down to 7,380 pounds a ton. The most-active CBOT soybean contract ZS1! traded 0.4% down to $11.75 a bushel, wheat ZW1! rose 0.4% to $5.58-1/4 a bushel and corn ZC1! edged 0.1% up to $4.35-1/2 a bushel.

Looking ahead, today's economic calendar releases include, German Factory Orders and Import Prices, EZ Retail Sales, US Non-Farm Payrolls and Unemployment Rate, Canada Ivey PMI, Russia GDP Growth Rate, Fed Bowman Speech.

You can view all markets data and charts here.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team

Rating: Mixed Outlook

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