Global Markets Roundup: 13 Mar 2024

Tech-driven momentum propelled Wall Street higher on Tuesday. Equities surged to seven-month highs on Wednesday, buoyed by record-breaking gains on Wall Street. Despite slightly elevated U.S. inflation figures, investors remained optimistic, wagering that it would not impede anticipated interest rate cuts by mid-year. Earlier in the week, a Reuters report revealed China's directive to bolster financial backing for developer China Vanke 000002, providing a lift to Hong Kong stocks. The MSCI's comprehensive index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) ascended by 0.2% to its peak since early August, while the Hang Seng HSI scaled 0.4% to reach a three-and-a-half-month zenith.

In Japan, the Nikkei NI225 held steady, with focus trained on ongoing springtime wage negotiations, potentially heralding an exit from negative interest rates as soon as next week. Recent data unveiled a solid 0.36% uptick in U.S. consumer prices for February, slightly exceeding expectations, driven by elevated fuel and shelter costs. However, on an annual basis, core CPI moderated marginally to 3.8%. Vishnu Varathan, Chief Economist for Asia excluding Japan at Mizuho Bank in Singapore, remarked, "It does not blow a mid-2024 rate cut out of the water. Despite bumpiness in the path, the direction of travel is consistent." Following the release, U.S. Treasury yields climbed, with two-year yields (US2YT=RR) closing the New York session 6.5 basis points higher at 4.599%, while 10-year yields (US10Y) rose by 5.1 bps to 4.155%. Interest rate futures (0#FF:) witnessed a slight dip in response, but the pricing for June indicated roughly a 68% probability of a cut. National Australia Bank economist Taylor Nugent observed, "Equity markets were braced for worse or were not listening," as U.S. stock indexes surged to record highs despite initial hesitation. The S&P 500 SPX notched a 1.1% gain, achieving a new pinnacle in closing figures. Database titan Oracle ORCL saw a 12% surge following better-than-expected profits and an impending joint announcement with Nvidia NVDA, a favorite in the market. European markets follow positive momentum, Euro STOXX 50 Futures poised to open higher.

In the currency markets, the (DXY) dollar received a minor lift 102.93 from the uptick in U.S. yields, while traders largely absorbed the inflation surprise. The Australian dollar AUDUSD held steady at $0.6603, and the euro EURUSD maintained its position at $1.0952. Sterling GBPUSD was pivoting $1.2787. The yen USDJPY, buoyed by anticipation of a rate hike in Japan, strengthened by about 0.2% to 147.33 per dollar, fueled by news of wage hikes at major companies.

In the commodities market, Brent futures for May delivery (BRN1!) exhibited a notable uptick, ascending by 46 cents, equivalent to a 0.6% increase, to reach $82.38 per barrel as of 0400 GMT. Simultaneously, the April U.S. West Texas Intermediate crude (CL1!) contract also experienced a positive surge, advancing by 47 cents, or 0.6%, reaching $78.03. Higher yields exerted downward pressure on GOLD, pushing it to $2,157 an ounce from near-record levels. As of 0454 GMT on Wednesday, the benchmark three-month copper price on the London Metal Exchange (LME), designated as HG1, remained relatively stable, hovering near $8,658 per metric ton.

In soft commodities the arabica coffee futures for May delivery (KCK24) experienced a positive uptick, closing higher by +0.90 points, marking a percentage increase of +0.49%. Similarly, ICE robusta coffee futures (RMK24) also exhibited gains, concluding the trading day up by +28 points, representing a rise of +0.85%. Cocoa futures surged to unprecedented levels in both the New York and London markets, propelled by an ongoing supply deficit. Concurrently, coffee prices experienced an uptick in closure. Closing at a noteworthy $7,049 per metric ton, May New York cocoa (CC2!) demonstrated a robust 4.8% increase, culminating in a record high of $7,096 during the session. On Wednesday, the CBOT reported a modest uptick in corn futures. The price of CBOT corn (ZC1!) edged up by 0.1% to reach $4.42-1/4 per bushel, following a recent climb to $4.45, its highest level since February 6th. Despite this positive movement, corn prices remain approximately 6% lower compared to the beginning of the year, having touched their lowest point since 2020 in the previous month. Meanwhile, wheat futures (ZW1!) also experienced a slight increase, with a rise of 0.5% to $5.50-1/4 per bushel. However, this gain was tempered by the proximity of the current price to Monday's low of $5.24.

Looking ahead in today's economic calendar we have these important releases:

• UK GDP
  
• UK industrial and manufacturing production
  
• German 10-year Bund auction
  
• US crude oil inventories
  

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

Risk Disclaimer!

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)

Terms and Conditions

Privacy Policy