Global Markets Roundup: 07 May 2024

Tuesday saw Asia-Pacific (APAC) shares soaring to 15-month highs, fueled by renewed optimism surrounding potential interest rate cuts in the United States.

In early trading, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) surged by 0.3%. Although Hong Kong shares experienced marginal declines, the Hang Seng index (HSI) had previously surged over 14% in a 10-day winning streak, propelled by substantial investments from mainland traders, marking its most extended bullish run since 2018. Japan's Nikkei (NI225) surged by 1.3%, while S&P 500 futures (ES1!) maintained stability following a 1% increase in the cash index during the previous session. Market sentiment was buoyed by last week's U.S. jobs data, which fell below expectations, and remarks from Federal Reserve Chair Jerome Powell reaffirming the likelihood of future rate cuts.

Treasury markets, which rallied following the release of Friday's job figures, maintained stability in New York overnight, with 10-year yields (U10YT=RR) holding steady at 4.49% in Tokyo on Tuesday. Anticipations of at least one U.S. rate cut by November prompted interest rate markets to remain active. The dollar experienced varied performance against major currencies, particularly gaining against the yen due to expectations of limited rate movements in Japan.

The Australian dollar depreciated and bond yields declined on Tuesday following the Reserve Bank of Australia's (RBA) decision to maintain interest rates at 4.35 %. The RBA's policy statement adopted a more dovish tone than anticipated, with less emphasis on the need for further tightening, which led to a repricing of rate hike expectations in the market.

In currencies, the U.S. dollar index DXY was trading flat at 105.13. The USDJPY, rose 0.6%, GBPUSD, traded around $1.2564, EURUSD was pivoting $1.0770, the AUDUSD fell down to $0.6603 after the RBA rate decison.

In commodity markets, Brent crude BRN1! was trading 0.28% higher at $83.56 per barrel, while U.S. West Texas Intermediate (WTI) crude CL1! edged 0.31% up to $78.72 a barrel.. Gold prices remained steady at $2,325 an ounce on Tuesday after overnight gains. Spot silver XAGUSD1! was trading 0.4% lower to $27.35 per ounce. Platinum PL1! edged 1% to $963.60 XPDUSD1! and palladium jumped 0.5% higher to $982.18. Three-month copper on the LME HG1! climbed 1.5% to $10,061.50 a ton, while the most-traded June copper contract on the SHFE HG1! was trading flat at 80,920 yuan ($11,213.35) a ton.

In soft commodities, the corn contract on the CBOT ZC1! was 0.11% higher at $4.69-1/2 a bushel, wheat ZW1! was 0.15% lower to $6.47-3/4 a bushel, while soybeans ZS1! fell 0.18% to $12.46-1/2 a bushel. July New York cocoa CC2! ​​was trading 6.8% lower at $7,588 a metric ton. July arabica coffee KC2! was trading 2.8% lower at $1.952 per lb. July raw sugar SB1! was trading 1% higher at 19.48 cents per lb. Negative crop projections from Russia due to the dry weather, and massive flooding in Brazil, highly likely will drive prices of agricultural commodities higher.

Looking ahead today, markets anticipate, German Balance of Trade, EU Retail Sales, Canada Ivey PMI s.a, 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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