28 May 2024
The Trade Academy Team
07:25 CET - 3 min read
Tuesday Morning Coffee - Markets Update - 28 May 2024 - APAC Shares Drift Post-Rally, Wall Street Reopening in Focus
Markets Update: Asia-Pacific markets were mixed on Tuesday as investors awaited key inflation data and central bank decisions, with European Central Bank officials hinting at potential rate cuts driving gains in most markets except Japan's Nikkei.
by TradingView
Global Markets Roundup: 28 May 2024
Asia-Pacific (APAC) shares exhibited mixed performance on Tuesday following a rally in the previous session. The market sentiment was bolstered by increasing bets on an imminent rate cut by the European Central Bank (ECB), which improved risk appetite ahead of crucial inflation data releases. Overnight statements from several ECB officials highlighted the potential for interest rate cuts as inflation decelerates, reinforcing expectations for a rate cut on June 6. Market speculations have now fully priced in two rate cuts by October.
This outlook supported Wall Street stock futures ahead of the U.S. market reopening after a public holiday. S&P 500 futuresES1! edged up 0.1%, while Nasdaq futures (NQ1!) gained 0.2%. Investors are keenly awaiting guidance on the rate outlook from a series of Federal Reserve speakers later in the day.
The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose by 0.4%, driven by a 0.7% increase in Hong Kong's Hang Seng index HSI, which had climbed 0.9% on Monday. Conversely, Japan's Nikkei NI225, slipped 0.3%, reversing some of the previous day's 0.7% gain. Chinese blue-chip stocks 399300 fell 0.1% after gaining 1% the previous day, as tech shares surged on Beijing's renewed commitment to its semiconductor industry.
In the foreign exchange markets, the dollar DXY weakened for the third consecutive session as traders positioned for the PCE release. Median forecasts predict a 0.3% rise in April, maintaining the annual rate at 2.8%, with downside risks. The Japanese yen steadied at 156.80 USDJPY, slightly stronger than the critical 157 level. The NZDUSD also hit a 2-1/2-month high of $0.6155, driven by strong carry trade demand. The GBPUSD was trading around $1.2778. The AUDUSD jumped 0.2% higher to $0.6668.
In commodities, oil prices were relatively stable on Tuesday, with Brent crude futures BRN1! inching up 0.1% to $83.19 per barrel, while U.S. West Texas Intermediate (WTI) crude futures for July CL1! were trading 1.52% higher at $78.90 a barrel. GOLD prices continued their upward trend for a third day, rising 0.1% to $2,354.23 per ounce. Three-month copper on the London Metal Exchange (LME) HG1! traded 2% higher to $10,535 per metric ton.
In soft commodities, The most-active wheat contract on the CBOT ZW1! was 2.9% higher at $7.17-1/4 a bushel. CBOT soybeans ZS1! jumped 0.2% at $12.50-1/4 a bushel and corn ZC1! edged 1.2% to $4.70-1/4 a bushel.
Looking ahead today, markets anticipate, German Wholesale Price Index, ECB Consumer Expectations Survey, Canadian Producer Prices.
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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