Global Markets Roundup: 2 July 2024

On Tuesday, the U.S. dollar approached a nearly 38-year high against the ​yen, driven by a surge in Treasury yields as investors weighed the possibility ​of a second Donald Trump presidency. Meanwhile, the euro held firm as ​French political parties united to thwart the far-right National Rally (RN) from ​gaining power.

Asian equities showed mixed performance, while crude oil prices edged ​higher after a strong rally in the previous session. Later today, U.S. Federal ​Reserve Chair Jerome Powell is set to speak at an event hosted by the ​European Central Bank, focusing attention on U.S. monetary policy amid ​several closely watched employment reports, including Tuesday's JOLTS job ​openings data, a Fed favorite.

In Asia, stock markets opened with a lackluster performance, showing no ​clear direction. Japanese banks lifted the Nikkei NI225 by 0.6% amid rising ​domestic bond yields, while property shares supported Hong Kong's Hang ​Seng HSI, which rose 0.3%. However, mainland blue chips remained flat, ​Taiwan's tech-heavy benchmark declined by 0.8%, and South Korea's Kospi ​fell by 0.6%. MSCI's broadest index of Asia-Pacific shares outside Japan ​dipped by 0.2%.

In currencies, the yen's weakness has heightened trader vigilance for ​potential Japanese intervention, especially after authorities spent ​approximately 9.8 trillion yen ($60.65 billion) between late April and early ​May when the currency dropped to 160.82 per dollar USDJPY . The euro ​EURUSD remained steady against the greenback, easing 0.07% to $1.0733 ​after reaching $1.0776 on Monday, the highest level since June 13. Investors ​were relieved that Marine Le Pen's anti-immigrant, eurosceptic RN party did ​not secure a larger share of the first-round vote over the weekend. Sterling ​GBPUSD traded around $1.2641 level. The dollar traded slightly higher at ​161.56 yen USDJPY on Tuesday, close to the overnight peak of 161.72 yen, ​a level not seen since December 1986. The currency pair is highly sensitive to ​U.S. yields, and the benchmark 10-year Treasury yield climbed nearly 14 ​basis points to 4.479% at the start of the week. The dollar index DXY edged ​0.057% higher at 105.9. The AUDUSD traded aroun $0.6650 level, while the ​NZDUSD lost 0.3% at $0.6075.

In commodities and agricultural commodities, crude oil prices ticked higher ​following Monday's gains of around 2%, coinciding with the start of the ​northern hemisphere's summer driving season. Brent futures BRN1! ​increased by 0.21% to $86.78 per barrel, building on a 1.9% overnight rally, ​while U.S. WTI CL1! crude rose by 0.13% to $83.49, extending a 2.3% jump ​from the previous session. Spot GOLD was trading 0.2% lower at $2,326.82 ​per ounce. Wheat ZW1! lost 0.4% to $5.87-3/4 a bushel. September London ​cocoa CC2! ​​​traded, and closed 3% lower, to 6,170 pounds per metric ton. ​September arabica coffee KC2! dropped 0.9% at $2.2485 per lb.

Looking forward today, markets anticipate, Italy Unemployment Rate, EU ​Inflation Rate, Fed Chair Powell Speaks, US JOLTs Job Openings, Brazil ​Balance of Trade.

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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