Global Markets Roundup: 31 May 2024

Financial markets held their breath on Friday as investors awaited key inflation data from Europe and the United States that will likely determine the direction of interest rates globally.

APAC stocks edged higher, clawing back from a three-week low on Thursday. The broader MSCI index 399300 of Asia-Pacific shares outside Japan was up 0.20%. The Nikkei NI225 edged 1.14% up and closed at 38,487.90. A downward revision to U.S. consumer spending data for the first quarter weighed on Treasury yields and the dollar. The weaker-than-expected economic growth fueled expectations of potential Federal Reserve rate cuts this year. Investors awaited the release of the core PCE price index, the Fed's preferred inflation gauge, for April. Market pricing suggests a possible September cut, with traders anticipating 35 basis points of easing for the year. European stock markets were cautious ahead of the euro zone inflation report, also due on Friday Eurostoxx 50 futures FESX1! fell 0.04%. The European Central Bank is all but certain to cut rates in June, but the future path of policy remains uncertain. Markets are currently anticipating 60 basis points of ECB cuts this year.

Asian equities rose modestly, supported by month-end rebalancing by fund managers.

The yen hovered near four-week lows against the dollar. Oil prices eased slightly on news of a surprise increase in U.S. gasoline stocks. Chinese stocks also gained despite a report showing an unexpected decline in China's manufacturing activity in May. The soft data reinforces calls for additional stimulus measures as the protracted property crisis continues to weigh on the economy.

In currencies, the U.S. dollar index DXY edged lower on Friday, trading at 104.82. This puts the index on track for a 1.4% decline in May, snapping a four-month winning streak. The EURUSD inched down 0.12% to $1.08192 ahead of key eurozone inflation data due later today. This data is expected to influence the European Central Bank's (ECB) monetary policy path. While a rate hike in June is widely anticipated, the ECB's future trajectory remains uncertain. The USDJPY was trading around 156.80. The GBPUSD trading at $1.2714. The AUDUSD dollar was trading around $0.663, while the NZDUSD was trading slightly higher at $0.6121.

In commodities, oil prices fell on Friday after a surprise build in U.S. gasoline stockpiles dampened market sentiment. Brent crude futures BRN1! dipped 0.28% to $81.63 per barrel, while West Texas Intermediate (WTI) crude CL1! slid 0.35% to $77.64 per barrel. GOLD was trading flat at $2,343.04 per ounce. Three-month copper on the LME HG1! was hovering around $10,133 per metric ton. LME aluminium ALI1! fell 0.5% to $2,690 a ton, nickel NICKEL1! rose 0.5% to $20,165, tin FTIN1! traded 0.3% higher to $33,200, and lead LEAD1! climbed 0.1% to $2,279.50, while zinc ZNC1! lost 1.2% at $3,034.

In soft commodities, CBOT soybeans ZS1! edged 0.7% at $12.18-1/4 a bushel, and corn ZC1! traded 0.6% higher at $4.51-1/4 a bushel. The most-active wheat contract on the CBOT ZW1! climbed 0.7% at $6.86 a bushel. August white sugar SF1! lost 0.6% at $540.10 a ton. July raw sugar SB1! fell 0.9%, at 18.19 cents per lb. July New York cocoa CC1! was 0.6% down to $9,257 a ton. July London cocoa C1! shed 1.6% to 7,420 pounds per ton. July arabica coffee KC1! climbed 1.5% at $2.33 per lb. July robusta coffee RC1! jumped 2.2%, at $4,270 a metric ton.

Looking ahead today, markets anticipate, Italy GDP Growth Rate, UK Mortgage, EU Inflation Rate Flash, US Core PCE Price Index, Canada GDP, US Personal Income/Spending.

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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