Global Markets Roundup: 29 May 2024

U.S. Treasury yields reached their highest levels in nearly four weeks, exerting upward pressure on their Asia-Pacific counterparts and the dollar, while equities came under strain. Fresh data has renewed uncertainties regarding the timing and extent of potential Federal Reserve rate cuts.

Benchmark U.S. 10-year yields increased to 4.556% during Tokyo trading hours, a level not seen since May 3, following poorly received two- and five-year Treasury auctions overnight. Similarly, Japanese 10-year yields surged to their highest since December 2011 at 1.065%, and Australian 10-year yields climbed to a three-week peak at 4.42%.

Regional stock markets mostly declined on Wednesday, with the exception of mainland China. Japan's Nikkei NI225 fell by 0.4%, Australia's benchmark dropped more than 1%, and Hong Kong's Hang Seng HSI decreased by 1.2%. In contrast, mainland blue chips gained 0.3%. MSCI's broadest index of Asia-Pacific shares fell by 0.8%. U.S. S&P 500 futures indicated a 0.2% decline following a flat finish for the cash index on Tuesday.

Investors were also surprised by a sharp improvement in the U.S. consumer confidence index for May. Economists had anticipated a fourth consecutive month of weakening confidence, especially after a lukewarm reading from the University of Michigan's similar survey last Friday. This unexpected boost in consumer confidence has added to the market's uncertainty about the strength of the economy and persistent inflationary pressures, complicating the outlook for the Fed's policy decisions. According to the CME Group's FedWatch Tool, traders now estimate a 44% probability of at least a quarter-point interest rate cut by September, down from an even chance the previous day.

In the forex space, the DXY was almost flat at 104.7. The USDJPY rose to 157.41, while the EURUSD lost 0.06% to $1.0850 The AUDUSD appreciated by 0.08% to $0.66545.

In commodities, Brent crude BRN1! futures for July delivery rose by 27 cents, or 0.3%, to $84.49 per barrel, while U.S. West Texas Intermediate CL1! futures for July increased by 35 cents, or 0.4%, to $80.18. Spot GOLD fell 0.2% to $2,356.92 per ounce. Three-month copper on the LME HG1! edged 0.5% at $10,553 per metric ton.

In soft commodities, The most-active wheat contract on the Chicago Board of Trade (CBOT) ZW1! was down 1% at $6.93-1/2 a bushel by 0220 GMT, after rising to $7.20 on Tuesday, its highest since July 2023. In other crops, CBOT soybeans ZS1! slipped 0.5% to $12.23-3/4 a bushel and corn ZC1! was 0.4% lower at $4.60-3/4 a bushel. July arabica coffee KC1! jumped 5.8% at $2.3095 per lb. July robusta coffee RC1! traded 5.9% higher at $4,120 a metric ton. July New York cocoa CC1! edged 5.9% to $8,780 a ton. July London cocoa C1! gained 3.8%, to 7,080 pounds per ton. August white sugar SF1! rose 1.4% to $553.50 a ton. July raw sugar SB1! ​was 1.7% higher at 18.73 cents per lb.

Looking ahead today, markets anticipate, German GfK Consumer Sentiment, German CPI, US Richmond Fed Manufacturing.

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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