Global Markets Roundup: 01 May 2024

On Wednesday, both Australian and Japanese markets experienced a downturn as investors anticipate the forthcoming rate decision by the U.S. Federal Reserve, scheduled early Thursday in the Asian time zone. Most of Asian Markets, European Markets, and some North/South America Markets are closed for the Labor Day holiday.

With the Labor Day holiday observed across most Asian markets, trading activity was notably subdued. In Japan, the Nikkei 225 index tapered off marginally by 0.1%, reversing initial losses, while the broader Topix index retreated by 0.29%. Meanwhile, the Australian S&P/ASX 200 index encountered a more substantial setback, declining by 0.85%.

Across the Pacific, on Tuesday, all three major U.S. indexes experienced declines subsequent to the revelation of wage data surpassing expectations, thereby fueling fresh apprehensions regarding inflation in advance of the Federal Reserve’s imminent decision on interest rates. According to the Labor Department, the employment cost index, a gauge of wages and benefits, ascended by 1.2% in the initial quarter, surpassing the consensus estimate of 1% among economists surveyed by Dow Jones. In response to this data, Treasury yields surged, with the 2-year yield eclipsing 5%. The S&P 500 index witnessed a decline of 1.57%, paralleled by a 1.49% drop in the Dow Jones Industrial Average, while the Nasdaq Composite registered a steeper descent of 2.04%, closing at 15,657.82.

In currency markets, the USDJPY fell 0.88% to 157.73, the dollar index DXY rose 0.52% to 106.24, while the EURUSD traded 0.42% lower at $1.0674. The GBPUSD was 0.49% lower at $1.2499.

In commodities, oil prices sustained their downward trajectory for a third consecutive day, driven by both burgeoning U.S. inventories and growing optimism surrounding a potential ceasefire agreement in the Middle East. Brent crude contracts dipped by 0.88% to $85.57 per barrel, while U.S. WTI crude CL1! experienced a more pronounced decline of 1.03%, settling at $81.09 per barrel. Spot GOLD was down 0.1% at $2,284.44 per ounce. Three-month copper on the LME HG1! was 0.9% down to $9,901.50 per metric ton, and aluminium ALI1! lost 0.3% to $2,584 a ton. LME lead LEAD1! fell 0.3% to $2,209.50, nickel NICKEL1! traded 0.3% down to $19,175, while tin FTIN1! gained 0.2% to $31,270 a ton.

The most-active wheat contract on the CBOT ZW1! was 0.6% higher at $6.06-3/4 a bushel, while CBOT soybeans ZS1! fell 0.4% to $11.58-3/4 a bushel and corn ZC1! was flat at $4.46-3/4 a bushel. July robusta coffee RC2! traded 3.4% down to $4,021 a ton - while July arabica coffee KC2! lost 4.8% to $2.1665 per lb. July London cocoa futures C2! fell 15%, while July New York cocoa futures CC2! traded 3.9% higher to $9,283 a ton. August white sugar SF1! lost 0.8% to $569.30 a ton.

Looking ahead today, markets anticipate, UK Nationwide Housing Prices, US ADP Employment Change, US ISM Manufacturing PMI, US JOLTs Job Openings, Fed Interest Rate Decision, and Fed Press Conference.

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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