Global Markets Roundup: 12 Apr 2024

APAC equities remained subdued on Friday as investors deliberated over the Federal Reserve's potential timing for interest rate adjustments amidst an uncertain U.S. inflation trajectory. Gold surged to an unprecedented peak after a modest reading in producer price inflation kept hopes alive for Fed easing in the current year. However, U.S. Treasury yields lingered near five-month highs following mid-week consumer price data that exceeded expectations, leading to a reduction in rate cut speculations. The dollar hovered close to a five-month high after recording a nearly 1% increase against major counterparts throughout the week. Meanwhile, crude oil sustained its position above the $90 threshold amid escalating tensions in the Middle East. Market sentiment now anticipates fewer than two quarter-point reductions to the Fed funds rate in 2024, contrasting with the three cuts projected by Fed officials last month. This shift followed a swift adjustment of easing expectations subsequent to Wednesday's CPI surprise.

Fed representatives indicated on Thursday that there was no immediate need for easing, with Boston Fed President Susan Collins highlighting the economy's resilience and the uneven retreat in inflation as factors against an imminent rate adjustment. The Nikkei 225 NI225 in Japan emerged as a notable performer in the Asia Pacific region on Friday, recording a 0.5% increase. The surge was primarily led by the tech sector, drawing inspiration from a rally among U.S. peers. However, the index's gains were tempered by a significant decline in shares of Fast Retailing, owner of the Uniqlo chain, following disappointing earnings. Elsewhere, most markets experienced marginal declines.

South Korea's KOSPI slipped by 0.39%, and Singapore's Straits Times Index was down by 0.12%. Both countries' central banks opted to maintain their policy stances unchanged. Hong Kong suffered the most significant losses, with the Hang Seng sliding by 1.31% due to downward pressure from property shares. Mainland China's blue chips remained flat. MSCI's broadest index of Asia-Pacific shares outside Japan dipped by 0.3% but is still poised for a 0.52% weekly increase. In Europe, in the pre-market session the EURO STOXX 50 Index Futures FESX1! trade 0.63% higher. Long-term U.S. Treasury yields stood at 4.5641% in Asian trading, closely mirroring the overnight high of 4.5680%, last observed on Nov. 14.

In currencies, the dollar index (DXY), which gauges the currency against the yen, euro, and other major peers, stood at 105.26, following its ascent to the highest level since Nov. 14 at 105.53 overnight. It marked a weekly increase of 0.95%. The EUR/USD exchanged for $1.07245 after touching a nearly two-month low at $1.0699 on Thursday, spurred by signals from the European Central Bank suggesting imminent rate adjustments. The USD/JPY traded at 153.105, prompting renewed intervention warnings from Japan's finance minister. Elsewhere, sterling GBPUSD dropped 0.01% to $1.2553, The renewed dollar strength also weighed on the AUDUSD and NZDUSD, which each fell 0.02%.

In commodities, crude oil prices climbed following Iran's vow to retaliate against a suspected Israeli airstrike on its embassy in Syria. Brent crude futures added 34 cents to reach $90.08 a barrel, while U.S. WTI crude futures gained 44 cents to settle at $85.45. GOLD surged to a record $2,395.29, reflecting a weekly gain of 2.74%. The three-month LME copper contract trades 0.2% higher at $9,356.50 a ton. In the commodities market on Friday, April 12th, 2024, spot silver (XAGUSD1!) saw a notable uptick, rising by 0.7% to reach $28.66 per ounce. Similarly, platinum (PL1!) experienced a 0.7% increase, reaching $986.80, while palladium (XPDUSD1!) saw a 0.6% rise, reaching $1,052.61.

In soft and agricultural commodities, May arabica coffee (KCK24) closed Thursday with a significant surge of +5.70 points (+2.66%). Meanwhile, May ICE robusta coffee (RMK24) also exhibited strength, closing up +66 points (+1.75%). In cocoa futures, July London cocoa (C2!) settled 108 pounds higher, marking a 1.3% increase to 8,213 pounds per metric ton, following a session peak of 8,354 pounds, a record high. Turning to grains, the most-active corn contract on the CBOT (ZC1!) experienced a slight decline, losing 0.3% to settle at $4.27-1/2 per bushel. Wheat futures (ZW1!) eased by 0.2%, closing at $5.50-3/4 per bushel, while soybeans (ZS1!) fell by 0.3% to $11.56-1/4 per bushel. Notably, both wheat and soybeans have incurred losses exceeding 2% for the week.

Looking ahead, in todays economic calendar we have: UK GDP numbers, UK Industrial Production, German Inflation Rate, US Import and Export prices, Michigan Consumer Sentiment.

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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