Global Markets Roundup: 18 Apr 2024

Asian-Pacific stocks experienced a mixed performance on Thursday, as the dollar's surge paused and bond markets stabilized amidst investor contemplation of the interest rate trajectory. The Asia-Pacific region witnessed varied movements in stock indices, with a 0.4% rise in MSCI's broadest index outside Japan (.MIAPJ0000PUS). Notably, South Korea's KOSPI and Australia observed gains, while Japan's Nikkei NI225 declined by 0.4%, signaling a potential largest weekly loss since December 2022. Following Wall Street's overnight descent, S&P 500 futures ES1! remained stagnant in early Asia trading. In European pre-market EURO STOXX 50 Index FESX1! Futures trade flat.

Australian equities seemed poised to break a five-day losing streak, with the ASX 200 XJO rising by 0.5% before midday in Sydney. Wednesday witnessed a decline in shares attributed to weaker-than-expected earnings from chipmaking supplier ASML ASML. Attention on Thursday turned to earnings reports from Taiwan Semiconductor Manufacturing Co 2330, with TSMC shares opening with a 1% dip. Market apprehension stemmed from a recent surge in bond yields and dollar strength, driven by persistent U.S. inflation and a shift in the Federal Reserve's stance towards maintaining elevated rates. The Nasdaq IXIC, sensitive to interest rates, registered a 3% decline since the week's onset.

In currencies, the dollar DXY experienced a minor decline overnight, coupled with news of an unconventional trilateral agreement among the U.S., Japan, and Korea to closely monitor foreign exchange, suggesting a potential intervention to curb dollar appreciation in the region. The euro EURUSD remained pressured amidst preparations by European policymakers for a rate cut in the coming months, hovering at $1.0665, slightly above this week's five-month lows. Meanwhile, unexpected job data from Australia led to a slight depreciation in the Australian dollar AUDUSD to $0.6435. The yen USDJPY neared a three-decade low at 154.22 per dollar, with traders monitoring a potential breach of 155 as a trigger for intervention. Bank of Singapore strategist Moh Siong Sim speculated that China would welcome a halt to yen depreciation, anticipating its impact on stabilizing the yuan USDCNY, which hovered at 7.2369 per dollar amid a 1.8% decline this year.

In commodity markets, Oil prices CL1! saw a significant decline, marking the sharpest drop in two-and-a-half months, driven by concerns over demand and the absence of immediate responses from Israel or the U.S. following Iran's weekend attack. Although anticipation looms over potential re-imposition of oil sanctions on Venezuela by the U.S., analysts do not foresee substantial new sanctions on Iranian oil. Consequently, Brent crude futures maintained stability at $87.37 a barrel, rebounding slightly from Wednesday's $2.70 dip. European gas prices retraced from three-month highs, while rallies in metal prices paused but did not reverse. GOLD remained below last week's record high at $2,366 an ounce. LME three-month copper HG1! reached $9,640.50 per metric ton.

In soft commodities, the most-active wheat contract on the CBOT ZW1! was up 0.3% at $5.54 a bushel. In other crops, CBOT soybeans ZS1! traded down 0.2% to $11.61-1/2 a bushel and corn ZC1! was lower 0.1% at $4.29-3/4 a bushel. July London cocoa C2! ​settled up 2.8%, to 8,585 pounds per ton. July arabica coffee KC2! rose 5.2% to $2.4035 per lb. July robusta coffee RC2! settled up 5.5%, at $4,195 a metric ton.

Later on Thursday, a few U.S. and European central bankers are scheduled to speak, with attention also on U.S. jobless claims data and earnings reports from Blackstone BX and Netflix NFLX.

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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