Global Markets Roundup: 04 June 2024

Asia-Pacific share markets edged lower on Tuesday as global investors reassessed the strength of the U.S. economy amid further weakening of its manufacturing sector.

The MSCI Asia-Pacific ex-Japan index (.MIAPJ0000PUS) dipped 0.1%, following modest gains in U.S. stocks from the previous session. Despite this, the index remains up 1.6% for the month. Australian shares (XJO) declined by 0.21%, while Japan's Nikkei index (NI225) dropped 0.77%. In early trading, Hong Kong's Hang Seng Index (HSI) remained flat, and China's CSI300 Index (3399300) decreased by 0.16%.

Yields on benchmark U.S. 10-year Treasury notes (US10Y) stood at 4.4001%, slightly down from Monday's 4.402%. The two-year yield (US2YT=RR), influenced by expectations of higher Federal Reserve rates, touched 4.8184%, unchanged from its previous close. On Monday, U.S. Treasury yields hit their lowest in two weeks following a second consecutive month of declining manufacturing activity. The 2-year yield fell by 6 basis points, while the 10-year yield dropped by 11 basis points.

In Europe, investors are anticipating the European Central Bank to lower the benchmark rate by 25 basis points to 3.75% on Thursday. On Wall Street, the S&P 500 (SPX) inched up 0.1%, the Dow Jones Industrial Average (DJI) fell 0.3%, and the Nasdaq Composite (IXIC) rose 0.6%. In India, Prime Minister Narendra Modi is poised to secure a record-equalling third term as votes are counted from the world's largest election, with 642 million ballots cast. Analysts predict a favorable outcome for India's financial markets, driven by expectations of further economic reforms.

In currency markets, the USDJPY rose to 156.35. The EURUSD increased by 0.1% to $1.0912, having gained 0.65% over the month. The GBPUSD last trading at $1.2818. The dollar index DXY, fell to 104. The USDCHF reached 0.8947.

In commodities, U.S. crude oil (CL1!) dropped 0.42% to $73.91 per barrel, while Brent crude (BRN1!) declined to $78.05 per barrel. Both benchmarks hit four-month lows on Monday after OPEC+ decided to unwind some production cuts starting in October. GOLD prices edged higher, trading at $2,350.73 per ounce. Three-month copper on the LME HG1! climbed 0.5% to $10,190.50 per metric ton. LME aluminium ALI1! rose 0.6% to $2,677.50 a ton, nickel NICKEL1! climbed up 0.1% at $19,435, zinc ZNC1! increased 0.7% to $2,964, lead LEAD1! was 0.3% higher at $2,294, and tin FTIN1! jumped 1.1% to $32,690.

In soft commodities, July robusta coffee RC1! traded up 3.7%, at $4,272 a metric ton. July arabica coffee KC1! climbed 1.9% at $2.2655 per lb. September London cocoa C2! ​was 2.5% higher, to 7,086 pounds per ton. July New York cocoa CC1! edged 4.8% to $9,775 a ton. The most-active corn contract on the CBOT ZC1! lost 0.39% to $4.41-3/4 a bushel. Soybeans ZS1! edged 0.13% to $11.86-1/4 a bushel. Meanwhile, wheat ZW1! fell 0.11% to $6.72 a bushel. August white sugar SF1! climbed 2% to $552.30 a ton. July raw sugar SB1! traded 2.6% higher, at 18.78 cents per lb.

Looking ahead today, markets anticipate, German Unemployment Change, South Africa GDP Growth Rate, Brazil GDP Growth Rate, US JOLTs Job Openings.

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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