Global Markets Roundup: 27 June 2024

APAC shares tumbled and bond yields surged on Thursday, driven by ​inflation worries, while the yen's depreciation past 160 per dollar heightened ​anticipation of potential intervention by Japanese authorities. In after-hours ​U.S. trading, Micron Technology's shares fell 8% after the chipmaker met, ​but did not exceed, high revenue expectations. Japan's Nikkei index dropped ​1%.

Both FTSE futures and European futures were down 0.2%. The MSCI's ​broadest index of Asia-Pacific shares outside Japan fell 0.7%, with significant ​losses in Australia, where rate-sensitive stocks dropped following a surprising ​rise in inflation data on Wednesday. Nasdaq futures NQ1! fell 0.4%. Japan's ​Nikkei NI225 dropped for 1%. FTSE futures Z1! and European futures ​FESX1! were trading both 0.2% lower. Australia XJO plummeted, as inflation ​hit six month high.

Australian three-year government bond yields soared 18 basis points on ​Wednesday after inflation hit a six-month high in May, rising an additional 7 ​basis points on Thursday to 4.18%, influenced by an overnight sell-off in U.S. ​Treasuries. Swaps markets now price about a 40% chance of a 25 basis ​points rate hike by Australia's central bank in August, up from around 10% ​before the inflation data release. Australia's unexpected inflation jump, ​coupled with a similar rise in Canadian inflation, added to market anxieties ​ahead of the Federal Reserve's preferred U.S. inflation measure due on ​Friday.

In foreign exchange markets, U.S. yields bolstered the dollar, especially ​against the yen and yuan, where the yield gap is most pronounced. China's ​yuan USDCNY fell to a seven-month low of 7.689 per dollar, influenced by ​the central bank's adjustment of the currency's trading band and data ​indicating a significant slowdown in industrial profit growth. The yen, which ​hit a lifetime low of 171.79 per euro EURJPY on Wednesday, remained ​fragile at 171.57 per euro. The dollar reached six-week highs against the ​pound GBPUSD and New Zealand dollar, with the USDJPY trading at 160.4 ​yen, just below a 38-year peak. Following overnight declines, the New ​Zealand dollar NZDUSD dipped another 0.1% to a six-week low of $0.6069, ​and sterling hit a six-week trough of $1.2613. The dollar index DXY reached ​a two-month high of 106.13 on Wednesday, up 1.3% for the month and ​almost 1.5% for the quarter, as expectations for U.S. rate cuts have been ​delayed due to persistent inflation and strong economic data.

In commodity/agricultural commodity markets, Brent crude BRN1! futures ​fell 0.2% to $85.07 a barrel, down 2.8% for the quarter. WTI crude futures ​CL1! lost 0.4%, to $80.59 per barrel. GOLD declined as yields increased, ​trading at $2,299 an ounce. Copper LME futures HG1! edged 0.2% higher at ​$9,558.50 per metric ton. Soybeans ZS1! was 0.2% higher to $11.09-1/2 a ​bushel. Corn futures ZC1! traded 0.4% lower to $4.23-3/4 a bushel. Wheat ​futures ZW1! remained near two-month lows, reflecting a good U.S. harvest ​and improved weather conditions in Russia. September New York cocoa ​CC2! lost 0.7% to $7,790 a ton.

Thursday's agenda includes the final U.S. GDP reading, European confidence ​figures, a speech from Australia's deputy central bank governor, and a rate ​decision in Sweden, all preceding the first U.S. Presidential debate.

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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