Global Markets Roundup: 09 May 2024

APAC shares regained equilibrium, buoyed by robust trade figures from China that signal a resurgence in domestic demand within the world's second-largest economy. Concurrently, the yen found stability after a three-day downturn, fueled by Japan's discussions regarding potential currency interventions.

The Bank of England (BoE) is poised to announce its interest rate policy later today, with market attention keenly focused on the possibility of a rate cut in June, particularly in the wake of Sweden's Riksbank decision to lower rates. This move underscores the growing divergence between European monetary policies and those of the U.S. Federal Reserve. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) recorded a modest uptick of 0.1%, remaining close to a 15-month high achieved earlier in the week following Federal Reserve Chair Jerome Powell's reaffirmation of a forthcoming policy easing. Investor sentiment hinges on forthcoming U.S. consumer inflation data slated for release next Wednesday, following three consecutive instances of unexpectedly high readings, which should offer clearer insights into the trajectory of Fed policy.

Chinese customs data revealed an 8.4% surge in imports for April compared to a year ago, surpassing expectations of a 4.8% increase, while export growth met forecasts. This favorable data bolstered Chinese equities, with blue-chip stocks rising by 1% and Hong Kong's Hang Seng index HSI increasing by 1.2%. Japan's Nikkei NI225 ascended by 0.5%, while Nasdaq stock futures NQ1! retreated marginally by 0.1%, weighed down by a 5.7% decline in Uber shares following a disappointing quarterly earnings report.

In the Treasuries market, yields remained relatively stable following a marginal increase in the previous session, with anticipation building ahead of the U.S. inflation report next week. Two-year yields (US2YT=RR) held steady at 4.8470%, while the 10-year yield US10Y stood at 4.5003%, climbing 3 basis points overnight.

The Japanese yen stabilized at 155.55 per dollar USDJPY after a three-day decline, rebounding from a more than 3% drop last week attributed to suspected Japanese interventions in the currency market. Top currency diplomat Masato Kanda's reassurance regarding unlimited reserves for currency intervention provided some relief to traders, while minutes from the Bank of Japan's April meeting revealed a predominantly hawkish sentiment among policymakers, further bolstering the yen. However, concerns linger over Japan's real wage decline, which contracted by 2.5% year-on-year in March for the second consecutive year, tempering expectations for aggressive policy hikes.

In currencies, the dollar index DXY, was trading flat around 105.51. GBPUSD was higher at $1.24975. USDJPY was hovering around 155.57. The EURUSD traded slightly higher $1.0748.

Oil prices rebounded on Thursday, recovering from two-month lows recorded in the preceding session. Brent BRN1! futures gained 0.4% to reach $83.91 a barrel, while U.S. crude CL1! rose by 0.5% to $79.40 a barrel. GOLD experienced a marginal uptick of 0.1%, reaching $2,311.23 per ounce.

The wheat contract on the CBOT ZW1! traded 0.24% higher at $6.35-4/8. Corn ZC1! edged 0.38% up to $4.60 a bushel, while soybeans ZS1! climbed 0.47% to $12.33-4/8 a bushel. July New York cocoa CC2! closed 0.3% higher to $8,634 a metric ton. July arabica coffee KC2! climbed 0.5% to $1.9755 per lb. August white sugar SF1! fell 2.2% to $572.90 a ton.

Looking ahead, markets anticipate, BoE Interest Rate Decision and Monetary Policy Report, US Initial Jobless Claims, US 30-Year Bond Auction.

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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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