Global Markets Roundup: 15 May 2024

On Wednesday, markets across the Asia-Pacific region experienced a notable uptick, while the trajectory of the dollar remained uncertain, reflecting the cautious stance adopted by traders ahead of the eagerly anticipated US inflation report. The report, expected later in the day, carries significant weight as it is poised to impact the Federal Reserve's strategic policy direction in the immediate future.

The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) saw a commendable ascent of 0.38%, marking a fresh 15-month high earlier in the trading session. Similarly, Japan's Nikkei NI225 exhibited a gain of 0.58%.

Overnight data unveiled a higher-than-anticipated surge in US producer prices for April, indicating that inflationary pressures persist stubbornly into the second quarter of the year. Federal Reserve Chair Jerome Powell, addressing a banking event in Amsterdam, characterized the producer price index (PPI) data as "mixed," refraining from labeling it as "hot," emphasizing revisions that lowered prior figures. Investor sentiment has been subject to a recalibration, with expectations for US rate cuts in 2024 tempered by persistent inflationary concerns. Presently, markets are pricing in a modest 43 basis points of easing for the year, a stark contrast to the 150 basis points forecasted at the onset of 2024. The spotlight now turns to the forthcoming US consumer prices report, with projections suggesting a 0.3% month-on-month increase in April, slightly below the 0.4% growth recorded in the previous month.

The Nasdaq IXIC achieved a historic closing high on Tuesday, while the S&P 500 SPX and the Dow DJI also registered gains, buoyed by Powell's remarks assuring investors of the unlikelihood of an imminent interest rate hike. Meanwhile, retail favorites GameStop GME and AMC AMC experienced significant overnight surges, potentially fueled by renewed attention on social media platforms.

In China, early trading saw a marginal decline in stocks, with the blue-chip index 3399300 down 0.16%, while Hong Kong's Hang Seng Index HSI experienced a 0.22% decrease. Geopolitical tensions resurfaced as US President Joe Biden unveiled plans for steep tariff increases on various Chinese imports, spanning electric vehicles, computer chips, and medical products.

In the currency realm, the dollar's performance remained subdued as traders exercised caution ahead of the CPI report. The EURUSD approached its one-month peak, trading at $1.0817, while the dollar index DXY, hovered at 105.01. The USDJPY was trading at 156.36. Elsewhere, the AUDUSD climbed to $0.6630, while the NZDUSD was trading higher to $0.6051.

In commodity markets saw oil prices edging higher, partly influenced by large wildfires threatening Canada's oil sands and anticipation of a drawdown in US crude oil and gasoline inventories. US crude CL1! experienced a modest 0.4% increase, reaching $82.71 per barrel, while Brent BRN1! stood at $78.39 per barrel, up 0.5%. The price of spot GOLD remained relatively stable at $2,356.79 per ounce amidst the prevailing market volatility. Three-month copper on the LME HG1! was 0.2% higher at $10,129.50 per metric ton. LME aluminium ALI1! fell 0.1% to $2,553.50 a ton, tin FTIN1! edged 1% up to $33,695, nickel NICKEL1! climbed 0.5% to $19,175, zinc ZNC1! climbed 0.9% to $3,029.50 and lead LEAD1! traded 0.9% higher to $2,280.

In soft commodities, the most-active soybean contract on the CBOT ZS1! was trading 0.2% higher at $12.17, with CBOT wheat ZW1! edged 0.8% higher to $6.78 a bushel, and corn ZC1! climbed 0.4% to $4.69-1/4 a bushel. July New York cocoa CC2! was 2.2% up, to $7,322 a metric ton. July London cocoa C2! climbed 2.5% to 6,149 pounds per ton. July arabica coffee KC2! traded 2.4% higher to $2.0085 per lb. July robusta coffee RC2! edged 1% up to $3,433 a ton. July raw sugar SB1! was trading 1.3% higher at 18.87 cents per lb. August white sugar SF1! climbed 0.5% to $553 a ton.

Looking forward today, markets anticipate, France Inflation Rate, EU Employment Change and Industrial Production, US CPI data, US Retail Sales.

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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