Global Markets Roundup: 09 April 2024

Industrial metals surged on Tuesday, buoyed by optimistic forecasts for a worldwide manufacturing recovery. Meanwhile, Asian equities cautiously advanced ahead of pivotal events, including this week's U.S. inflation report and a critical European Central Bank (ECB) meeting. The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) edged up by 0.2%, while Japan's Nikkei NI225 climbed by 0.6%. In the European pre-market Euro Stoxx 50 Futures FESX1! trades slightly lower.

Recent data revealed positive signs, with German industrial production surpassing expectations in February and U.S. manufacturing expanding for the first time in one-and-a-half years. Additionally, China's manufacturing activity saw growth for the first time in six months in March. Despite the overall positive sentiment, Chinese stocks remained subdued. However, Hong Kong's Hang Seng index surged by 1.2% in early trading, and China proxies such as the Antipodean currencies rallied.

In the currency markets, the focus shifts to the upcoming U.S. inflation data scheduled for Wednesday and the ECB meeting on Thursday. While the dollar DXY struggled to follow the surge in rates, the euro remained firm in anticipation of a potentially hawkish stance from the ECB. Strategists projected a stabilization around $1.0800 in EUR/USD in the near term. Amidst these developments, the yen faced continued pressure as investors anticipated a wider gap with Japan's near-zero interest rates. At 151.87 per dollar, the yen USD/JPY hovered near last month's 34-year low, prompting Japanese authorities to consider intervention to address excessive currency depreciation. The Australian dollar strengthened by almost 2% in a week, trading at $0.6605 on Tuesday. Similarly, the New Zealand dollar regained ground above $0.60, hitting a two-week high of $0.6047 in morning trade.

In commodities, precious metals also experienced significant gains, with gold hovering just below a record high of $2,353 hit on Monday. Spot GOLD has surged nearly 14% this year, while silver reached its highest level since mid-2021 and platinum also saw a notable uptick. Although Brent crude retreated from its recent peaks, it held above $90 a barrel at $90.62, West Texas Intermediate (WTI) crude traded for 21 cents higher at $86.64. Notably, Shanghai copper futures soared by 1%, reaching a two-year high, marking a more than 10% increase over the past month. Zinc reached a five-month peak in Shanghai, while Aluminum hit a 22-month high on Monday. May arabica coffee (KCK24) closed -1.40 (-0.6%), and May ICE robusta coffee (RMK24) closed -2 (-0.05%). May ICE NY cocoa (CCK24) closed +100 (+1.02%), and May ICE London cocoa #7 (CAK24) closed +203 (+2.540%). The most-active wheat contract on the CBOT traded lower for 1% at $5.60 a bushel. Soybeans fell for 0.1% to $11.80-1/2 a bushel and corn slid 0.3% to $4.34 a bushel.

Looking ahead, today, market participants anticipate: France Balance of Trade, China New Yuan Loans, US Redbook, RCM/TIPP Economic Optimism Index. Later in the week market participants remain vigilant for any surprises from the ECB meeting and the impact of U.S. inflation data on global market sentiment.

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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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