Global Markets Roundup: 06 June 2024

London, June 6, 2024 - Asia-Pacific (APAC) equities rallied on Thursday as expectations for a U.S. Federal Reserve rate cut in September solidified. The euro also gained traction ahead of the European Central Bank (ECB) policy meeting, where a rate decrease is widely anticipated. Fueled by this shift in Fed policy sentiment, oil prices climbed, while Treasury yields dipped to a two-month low on Wednesday following data suggesting a cooling U.S. labor market.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) advanced 1.14%, with tech stocks leading the gains. The index is on track for a 2.7% weekly rise, potentially snapping a two-week losing streak. Japan's Nikkei (NI225) added 1%. China's blue-chip index (.CSI300) rose 0.38%, while Hong Kong's Hang Seng Index (HSI) gained 0.81%. Indian markets awaited a muted start after Prime Minister Narendra Modi's re-election for a third term. Concerns lingered over potential policy complications due to his dependence on regional allies. On Wednesday, the S&P 500 (SPX) and Nasdaq (IXIC) scaled record highs. Nvidia (NVDA) surpassed a $3 trillion market valuation, becoming the world's second-most valuable company, eclipsing Apple (AAPL).

Recent economic data, including Tuesday's report showing a decline in job openings and Wednesday's softer-than-expected private payrolls data, fueled market expectations for Fed rate cuts. The CME FedWatch tool now indicates a 69% chance of a September rate cut, up from 47.5% a week earlier. Investor focus remains on Friday's nonfarm payroll report. Benchmark 10-year Treasury yields (US10Y) fell to a low of 4.2750% in Asian trading, the lowest since April 1.

In currencies, the dollar index DXY fell 0.14% to 104.10. The EURUSD rose in anticipation of a potential ECB rate cut today. The bank is expected to acknowledge progress in controlling inflation while emphasizing the need for further action. The dollar weakened across the board, with the USDJPY strengthening near its two-week high. Analysts warn that a dovish ECB stance falling short of expectations could be perceived as a policy misstep, potentially exacerbating inflation in the long run. The GBPUSD edged 0.09% higher to $1.2800. The NZDUSD traded highest in three months at $0.6201, while the AUDUSD was trading 0.25% higher to $0.6664.

In commodities, Oil prices edged higher, with Brent crude futures (BRN1!) up 0.48% and U.S. West Texas Intermediate crude (CL1!) increasing by 0.66%. GOLD was trading 0.8% higher at $2,373.31 per ounce. Three-month copper on the LME HG1! climbed 1.6% to $10,084 per ton.

In soft commodities, The most-active wheat contract on the CBOT ZW1! rose 0.2% to $6.47-3/4 a bushel. Soybeans ZS1! traded 0.4% higher to $11.81-3/4 a bushel and corn ZC1! gained 0.5% at $4.41-1/2 a bushel. July raw sugar SB1! ​​was 1.4% up, at 19.13 cents per lb. September robusta coffee RC2! climbed 3.2% to $4,322 a ton, a tad lower from the all time high.

Looking ahead, markets anticipate, German Factory Orders, ECB Interest Rate Decision, CAD Balance Of Trade, US Initial Jobless Claims, ECB Press Conference, CAD Ivey PMI s.a.

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

Risk Disclaimer!

Contact US

Contact email:

admissions@thetrade.academy

info@thetrade.academy

payments@thetrade.academy

support@thetrade.academy

marketing@thetrade.academy

mentor@thetrade.academy

Skype: TheTrade.Academy

All rights reserved 2017 - 2023 The Trade Academy Ltd.

Registered in England and Wales (Company number 12706394)

Terms and Conditions

Privacy Policy