Global Markets Roundup: 19 June 2024

London – APAC stocks reached a one-month high on Wednesday, driven by a ​surge in tech shares. The dollar remained stable as soft U.S. retail sales data ​reinforced expectations of a Federal Reserve rate cut later this year.

Japan's Nikkei NI225 climbed 0.59%, while the MSCI's broadest index of ​Asia-Pacific shares outside Japan (.MIAPJ0000PUS) increased by 1%, ​marking a potential gain of over 4% for June. Tech stocks in the region ​(.MIAPJIT00NUS) soared over 2% to a record high, fueled by Nvidia's NVDA ​ascension past Microsoft (MSFT) to become the world's most valuable ​company on Tuesday. European futures suggested a more subdued opening ​for European markets, with Eurostoxx 50 futures FESX1! unchanged and ​FTSE futures Z1! down 0.18%.

Investor attention is focused on the upcoming UK inflation data, which will ​influence the Bank of England's (BoE) policy decision on Thursday. The ​central bank is expected to maintain current rates. The inflation report is ​projected to show a decline in Britain's inflation rate to the BoE's 2% target in ​May from 2.3% in April, with services CPI anticipated to decrease to 5.5% ​annually from April's 5.9%.

U.S. retail sales showed minimal growth in May, with previous month's ​figures significantly revised downwards, indicating sluggish economic activity ​in the second quarter. This data increased rate cut expectations for ​September, with traders pricing in a 67% chance of easing. Fed officials are ​seeking further confirmation of cooling inflation and monitoring the strong ​labor market for any warning signs as they cautiously approach potential rate ​cuts by the end of this year.

In currencies, Sterling GBPUSD, down nearly 0.3% this month, last traded at ​$1.2708. Meanwhile, the euro EURUSD steadied at $1.0736, down 1% in ​June, pressured by political uncertainty following French President ​Emmanuel Macron's call for a snap election after his party's defeat in the ​European Parliament elections. The Japanese yen USDJPY remained steady ​at 157.835 per dollar, close to the six-week low of 158.255 reached last ​week, pressured by the significant interest rate differential between Japan ​and the United States. Minutes from the Bank of Japan's April policy meeting ​revealed a debate on the impact of a weak yen on prices, with some ​policymakers suggesting a potential rate hike sooner than expected if ​inflation overshoots. The dollar index DXY pivoted around 105.28. The ​AUDUSD edged 0.12% higher to $0.6664. The NZDUSD lost 0.19% to ​$0.6133.

In commodities and agricultural commodities, oil prices remained steady. ​Brent crude futures BRN1! edged up 0.06% to $85.38 per barrel, while U.S. ​West Texas Intermediate crude CL1! held steady at $81.56 per barrel. GOLD ​was trading 0.1% higher at $2,331.17 per ounce. Three-month copper on ​the LME HG1! jumped 0.5% to $9,720 per metric ton. September London ​cocoa CC2! ​​traded 1.4% higher, to 7,686 pounds per metric ton. July raw ​sugar SB1! ​traded 0.3% lower, at 18.92 cents per lb. September arabica ​coffee KC2! fell 0.5%, to $2.2625 per lb.

Looking ahead today, UK Inflation Rate, SAR Inflation Rate, Brazil Interest ​Rate Decision, while U.S. markets are closed.

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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