Global Markets Roundup: 26 June 2024

Asian-Pacific stocks experienced fluctuations on Wednesday as investors ​awaited critical U.S. inflation data. The yen remained close to the 160 per ​dollar mark, raising concerns about potential intervention by Japanese ​authorities.

Market Sentiment and Influences:

Hawkish remarks from Federal Reserve officials dampened risk sentiment, ​bolstering the U.S. dollar and diminishing near-term expectations for rate ​cuts. Australian consumer inflation surged to a six-month high in May, ​pushing the Australian dollar (AUD/USD) to its highest level in two weeks. ​The MSCI Asia-Pacific index (.MIAPJ0000PUS) remained relatively flat at ​566.53, close to the two-year high of 573.38 achieved last week. The Nikkei ​225 NI225 added 1.26%, while the TAIEX climbed for 0.48%. European ​stocks are set for a robust opening, with Eurostoxx 50 futures FESX1! up ​0.4%, German DAX futures DAX1! 0.3% higher, and FTSE futures Z1! ​increasing by 0.2%.

Sector-Specific Movements:

Japanese and Taiwanese markets, led by chipmakers, showed gains in ​response to the Nasdaq's IXIC tech rally, with Nvidia (NVDA) recovering over ​6% after a three-session decline that wiped out approximately $430 billion ​from its market value.

U.S. Monetary Policy Developments:

Federal Reserve officials emphasized patience regarding rate cuts. Governor ​Lisa Cook indicated a rate cut is feasible if economic performance aligns with ​expectations but did not specify a timeline. Governor Michelle Bowman ​suggested maintaining the current policy rate for some time might suffice to ​control inflation.

Market participants are pricing in 47 basis points of easing this year, with a ​66% chance of a rate cut in September, according to the CME FedWatch ​tool. Traders are keenly awaiting Friday's U.S. personal consumption ​expenditures (PCE) price index, the Fed's preferred inflation measure, ​expected to show a decrease in annual growth to 2.6% in May.

Yen and Bank of Japan's Position:

The yen, having touched a 34-year low of 160.245 per dollar on April 29, ​previously led Tokyo to spend around 9.8 trillion yen to support the ​currency. The yen's recent decline follows the Bank of Japan's decision to ​delay reducing bond-buying stimulus until its July meeting.

Currency Market Movements:

The Australian dollar AUDUSD rose over 0.5% to $0.6685 after the inflation ​data, prompting speculation of a possible rate hike as early as August. The ​dollar index (DXY) remained steady at 105.66, while the euro (EURUSD) ​stood at $1.071075. The yen (USDJPY) was at 159.76 per dollar, nearing the ​critical 160 level, which could trigger another round of intervention.

Commodities/Agricultural Commodities Market Update:

Oil prices saw an uptick, with Brent futures BRN1! rising 0.45% to $85.39 per ​barrel, and U.S. West Texas Intermediate futures CL1! increasing by 0.53% ​to $81.26 per barrel. GOLD prices eased to $2,316.88 per ounce but remain ​up 12% this year, following a record high of $2,449.89 last month. Three-​month copper on the LME HG1! lost 0.2% at $9,555.5. Corn ZC1! climbed ​0.9% to $4.47 a bushel and soybeans ZS1! edged 0.6% up to $11.18-1/2 a ​bushel. September London cocoa CC2! ​​edged 0.3% up and closed, to 6,638 ​pounds per metric ton. August white sugar SF1! lost 1.5% to $561.70 a ton. ​September arabica coffee KC2! was trading 2.9% lower to $2.293 per lb.

Looking ahead today, markets anticipate, French Consumer Confidence, UK ​CBI Distributive Trades, US Building Permits Final, US New Home Sales, EIA ​Crude Oil Stocks Change, US Bank Stress Tests.

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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