Global Markets Roundup: 24 May 2024

APAC stocks fell sharply on Friday, snapping a four-week winning streak, as strong U.S. economic data dimmed expectations of an imminent interest rate cut by the Federal Reserve. The dollar advanced on the back of this shift in sentiment.n MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) dropped 0.5%, putting it on track for a 1% weekly decline. Japan's Nikkei NI225 fared worse, sinking 1.45%.

China's markets saw little movement in early trading. Hong Kong's Hang Seng Index HSI dipped 0.33%, while mainland shares remained flat despite ongoing military exercises around Taiwan. Recent U.S. data, including a drop in jobless claims and a stronger-than-expected PMI survey, has caused investors to reassess the Fed's monetary policy path. Markets are now pricing in just 35 basis points of rate cuts in 2024, a significant drop from the 150 bps anticipated earlier this year (FEDWATCH). Atlanta Fed President Raphael Bostic echoed this sentiment, suggesting the central bank may need to hold off on rate cuts even with April's inflation dip, due to persistent upward price pressures. The revised rate outlook has pushed bond yields higher. The benchmark U.S. 10-year yield (US10Y) hit a one-week high of 4.498% on Thursday and remained elevated at 4.463% in early Asian trading.

In currencies, the dollar also benefited, with the dollar index DXY rising nearly 0.6% for the week to 105.06, poised for its biggest weekly gain since mid-April. This strength has put renewed pressure on the yen, which hovered near a three-week low of 157.03 per dollar USDJPY. Despite core inflation in Japan slowing for a second month in April, Bank of Japan Governor Kazuo Ueda remains confident in a moderate economic recovery. He indicated that the central bank might still raise rates in the coming months, even with a weak first-quarter GDP, as long as private spending and wages pick up in July. The EURUSD edged 0.08% higher to $1.08305. Elsewhere, sterling GBPUSD traded flat at $1.2694, following a two-month high earlier this week. The upcoming British elections are being monitored, but analysts expect minimal market impact. The AUDUSD fell to $0.6596, while NZDUSD jumped 0.4% to $0.6121 on stronger retail sales report.

In commodities, Oil prices remained steady, with Brent crude BRN1! at $81.39 a barrel and U.S. West Texas Intermediate CL1! at $76.87. GOLD prices rose slightly to $2334.16 per ounce but are on track for a 3.3% weekly decline, the largest since late September. Three-month copper on the LME HG1! was trading unchanged around $10,418.50 per metric ton. LME aluminium ALI1! edged 0.3% down to $2,613 a ton, zinc ZNC1! fell 0.1% at $3,061, lead LEAD1! decreased 0.4% to $2,296, tin FTIN1! fell 0.1% to $33,430 while nickel NICKEL1! rose 0.1% to $20,095.

In soft commodities, The most-active wheat contract on the CBOT ZW1! was trading 0.7% higher at $7.03 a bushel. Corn ZC1! jumped 0.4% to $4.65-3/4 a bushel and soybeans ZS1! climbed 0.1% to $12.40-3/4 a bushel. August white sugar SF1! lost 0.3% to $539.70 a ton. July raw sugar SB1! ​​was trading 0.2%, higher at 18.26 cents per lb. July London cocoa C1! edged up 6.6% to 6,652 pounds per ton. July New York cocoa CC1! climbed 7.6% to $8,109 a ton. July arabica coffee KC1! lost 2.2% to $2.1565 per lb. July robusta coffee RC2! fell 2.5% at $3,819 a metric ton.

Looking ahead today markets anticipate, German GDP Growth Rate, UK Retail Sales, US Durable Goods Orders, Canada Retail Sales, 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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