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Markets Update: Investors Cautious Ahead Of Key Economic Data
Today's important market events:
[EUR] German GDP (QoQ - Q1) - 08:00 CEST
actual at -0,3%
[USD] GDP (QoQ - Q1) - 14:30 CEST
[USD] Initial Jobless Claims - 14:30 CEST
[USD] Pending Home Sales (MoM - Apr) - 16:00 CEST
Global Markets Roundup: 25 May 2023
Asia-Pacific stocks were mostly lower on Tuesday, with investors cautious ahead of key economic data releases and central bank events. The losses on Wall Street on Monday, owing to debt ceiling fears, weighed on sentiment in Asia. Fitch also placed the US on Credit Watch Negative, adding to the concerns. However, Nasdaq futures surged after the close, as NVIDIA (NVDA) shares rallied almost 25% after earnings and forecasts beat expectations. The FOMC May minutes were in line with recent Fed commentary and showed that officials were somewhat split on support for more rate hikes. European equity futures are indicative of an open with a slight upward bias, with the Euro Stoxx 50 up 0.1%.
The U.S. dollar index (DXY) extended gains on Tuesday, as investors remained cautious ahead of key economic data releases and central bank events.
The dollar's strength was supported by comments from Federal Reserve Governor Christopher Waller, who ruled out a pause in June's rate hike cycle. Waller said that the data would determine whether the Fed hikes by 50 basis points or 75 basis points in June.
The FOMC minutes from the May meeting were also in line with recent Fed commentary, showing that officials were somewhat split on support for more rate hikes.
The debt ceiling talks in the U.S. were also a source of uncertainty for investors. House Speaker Kevin McCarthy said that there was some progress in the talks, but lawmakers will be leaving today for the recess, which could complicate the negotiations.
In other currencies, the euro (EUR/USD) remained lacklustre after a choppy performance and failure to reclaim the 1.0800 level. The British pound (GBP/USD) languished near a monthly low despite the recent UK CPI data. The Japanese yen (USD/JPY) climbed to a fresh YTD high as price action remained largely driven by rising U.S. yields.
In commodities, crude oil futures took a breather overnight but held on to most of their recent gains as the mammoth 12.5mln bbl draw in weekly crude stockpiles and Russian supply risks overshadowed the firmer dollar and downbeat risk tone. Spot gold traded rangebound with prices constrained by a firmer dollar and inconclusive FOMC Minutes. Copper futures reflected the cautious mood but were off lows amid some debt ceiling optimism.
Highlights for the day include:
U.S. IJC
GDP (2nd)
PCE Prices Prelim.
German GfK
CBRT & SARB Policy Announcements
Speeches from BoE's Haskel, ECB's Lane, de Guindos, Wunsch, Makhlouf & Vujcic, Fed's Barkin & Collins
Supply from Italy & US
Earnings from Generali, United Utilities & Ralph Lauren
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team