21 May 2024
The Trade Academy Team
07:25 CET - 3 min read
Tuesday Morning Coffee - Markets Update - 21 May 2024 - Stocks Inch Lower, Dollar Firm as Fed Focus Intensifies
Markets Update: Gold retreated slightly towards Monday's all-time peak, while crude oil prices eased on concerns that U.S. interest rates might remain high for an extended period as Fed officials maintained a cautious stance on the recent easing of inflation.
by TradingView
Global Markets Roundup: 21 May 2024
APAC stocks drifted lower while the dollar held firm on Tuesday, as investors awaited the minutes of the Federal Reserve's latest policy meeting to assess the timing and extent of potential interest rate cuts this year.
Japan's tech-heavy Nikkei NI225 edged higher, buoyed by chip shares following the Nasdaq's record high overnight ahead of Nvidia's earnings report due on Wednesday. Markets currently anticipate about 41 basis points of Fed rate cuts this year, with a quarter-point reduction fully priced in for November. Traders rushed to rebuild easing bets after data earlier this month indicated that consumer price pressures eased in April, following three months of upside surprises earlier in the year.
Despite this, Fed officials remain cautious about declaring inflation under control. Vice Chair Philip Jefferson stated on Monday that it was too early to determine if the slowdown is "long-lasting," and Vice Chair Michael Barr noted that restrictive policies need more time.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.6%, weighed down by the Hang Seng's over 1% decline from Monday's multi-month peak. Japan's Nikkei NI225 was a rare bright spot, rising 0.2%, building on the previous day's 0.73% rally. Nasdaq futures inched 0.1% lower after the cash index rose 0.65% overnight to close at an all-time high. S&P 500 futures were flat after Monday's 0.1% gain.
In currencies, the dollar firmed slightly against major peers, with the dollar index DXY up 0.1% to 104.69. The USDJPY was 0.07% higher to 156.37. Elsewhere, the EURUSD jumped 0.03% higher to $1.0860, while GBPUSD was trading 0.03% up to $1.27095. The NZDUSD was flat at $0.6107, while the AUDUSD edged 0.1% higher to $0.6674.
In commodities, Brent crude BRN1! futures declined 12 cents, or 0.1%, to $83.34 a barrel, while U.S. West Texas Intermediate crude CL1! eased 8 cents, or 0.1%, to $79.72 a barrel. GOLD eased 0.2% to about $2,420 per ounce, after nearing $2,450 for the first time overnight. Three-month copper on the LME HG1! lost 0.8% to $10,799 per metric ton.
In agricultural commodities, the most-active wheat contract on the CBOT ZW1! was trading 0.4% lower at $6.86 a bushel. Soybeans ZS1! was 0.4% down to 12.42-3/4 a bushel and corn ZC1! fell 1% to $4.56 a bushel. July London cocoa C1! was 2.2% lower to 5,988 pounds per metric ton. July arabica coffee KC2! was trading flat at $2.067 per lb. July robusta coffee RC2! edged 0.5% lower to $3,499 a ton. August white sugar SF1! was trading 3% higher to $550.80 a ton. July raw sugar SB1! jumped 3.0% to 18.68 cents per lb.
Looking ahead today, markets anticipate, German PPI data, EU Balance of Trade, Canada Inflation Rate, speech from Fed officials, and speech from BoE Gov Bailey.
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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