12 June 2024
The Trade Academy Team
Wednesday Morning Coffee - Markets Update - 12 June 2024 - APAC Stocks Trade Cautiously After Soft Inflation Data, US Fed in Focus
Markets Update: Though equities in Asia-Pacific showed a mixed performance after China's subdued CPI data, most markets displayed caution ahead of key US inflation data and the Federal Reserve's policy decision that could impact interest rates.
by TradingView
Global Markets Roundup: 12 June 2024
Equities in (APAC) exhibited a mixed performance on Wednesday following the release of subdued consumer price data in China. The US dollar held firm, with market participants awaiting a key US inflation report and the Federal Reserve's policy decision, both of which could impact near-term interest rate direction.
Japan's Nikkei Led Declines
Japan's Nikkei share average led regional declines, falling on Wednesday as major players, including Fast Retailing, saw losses. Investor caution prevailed ahead of crucial policy announcements from both the US and Japanese central banks. The Nikkei NI225 shed 0.73% to 38,848.4 by 0217 GMT, snapping a two-day winning streak. The broader Topix (TOPIX) also dipped 0.82% to 2,754.09.
China's CPI Meets Estimates, Chip Tech Concerns Linger
China's National Bureau of Statistics (NBS) reported that the consumer price index (CPI) rose 0.3% year-on-year in May, matching April's figure and falling short of analysts' expectations (0.4%). Zhiwei Zhang, chief economist at Pinpoint Asset Management, called for a "more comprehensive" policy response to bolster domestic demand. Sentiment was further weighed down by a Bloomberg report on Tuesday, suggesting the Biden administration might consider further restrictions on China's access to chip technology for artificial intelligence.
Shanghai, Hong Kong Markets Subdued
Shanghai's Composite index 000001 remained nearly flat at midday, down a marginal 0.02% to 3,027.41. The blue-chip CSI300 399300 dipped 0.17%, with financials (3399914) leading the decline at 0.75%. Consumer staples (0000912) offered some respite with a 0.29% gain, while real estate (000952) and healthcare (399913) saw declines of 1.24% and 0.12% respectively. Hong Kong's Hang Seng Index HSI mirrored the cautious mood, falling 1.45% to 17,913.10. China's H-shares listed in Hong Kong (HSCEI) also dropped 1.54% to 6,352.51.
In currencies
The dollar index DXY was trading higher at 105.29. The EURUSD was trading at $1.07367. GBPUSD was trading around $1.2739 ahead of UK GDP report. The USDJPY reached the level at 157.235.
In commodities
Brent crude futures BRN1! climbed 0.45%, to $82.29 a barrel, while U.S. WTI crude futures CL1! rose 0.6%, to $78.36. GOLD was trading flat at $2,312.69 per ounce. Three-month copper on the LME HG1! lost 0.2% to $9,747 per metric ton, aluminium ALI1! fell 1% to $2,552.50, zinc ZNC1! was 0.9% lower to $2,741 and lead LEAD1! traded 0.4% down to $2,190.50.
In agricultural commodities
Soybeans ZS1! edged 0.1% at $11.79 a bushel, while corn ZC1! lost 0.1% to $4.49-1/4 a bushel. The most-active wheat contract on the CBOT ZW1! fell 0.2% to $6.25 a bushel. September arabica coffee KC2! traded 0.2% lower, at $2.2145 per lb. September London cocoa C2! jumped 2.5% to 7,443 pounds per ton. August white sugar SF1! edged 0.4% higher at $546.50 a ton.
Looking ahead today, markets anticipate, UK GDP, UK Industrial/Manufacturing Production, German Inflation Rate, US Core Inflation Rate/Inflation Rate/CPI, Fed Interest Rate Decision/FOMC, 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
Contact US
Contact email:
admissions@thetrade.academy
info@thetrade.academy
payments@thetrade.academy
support@thetrade.academy
marketing@thetrade.academy
mentor@thetrade.academy
Skype: TheTrade.Academy
All rights reserved 2017 - 2023 The Trade Academy Ltd.
Registered in England and Wales (Company number 12706394)