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Markets Update: Asian Stocks Higher as US Debt Ceiling Averted
Today's important market events:
[USD] Avergae Hourly Earnings (MoM - May) - 14:30 CEST
[USD] Nonfarm Payrolls (May) - 14:30 CEST
[USD] Unemployment Rate (May) - 14:30 CEST
Global Markets Roundup: 02 June 2023
Asian stocks were higher on Tuesday, taking impetus from the gains on Wall Street as the US averted a default. The US Senate voted 63-36 to pass the US debt ceiling bill, which sends it to President Biden's desk.
The bill was passed after weeks of negotiations between Democrats and Republicans.
The S&P 500 and Nasdaq Composite indexes climbed to 9-month highs on Monday, as investors cheered the passage of the debt ceiling bill and positive economic data.
In Asia, the Nikkei 225 index in Japan rose 1.2%, the Hang Seng index in Hong Kong gained 1.1%, and the Shanghai Composite index in China added 0.6%. The US dollar index was little changed, while the euro and British pound were slightly higher.
The Australian Fair Work Commission raised the minimum wage by 5.75%, which boosted the mining sector in Australia. The Nikkei 225 was underpinned by comments from BoJ Governor Ueda, who stuck to the dovish script. SoftBank was among the biggest gainers following a buy rating from Jefferies. The Hang Seng and Shanghai Composite conformed to the broad upbeat mood, with Hong Kong significantly outperforming amid a rally in property and tech.
US equity futures held on to recent gains with the default threat averted, but with upside capped overnight ahead of the key US jobs data. European equity futures are indicative of a higher open with the Euro Stoxx 50 +0.5% after the cash market closed up 0.9% yesterday.
Currency Markets
The US dollar index (DXY) was rangebound around 103.50 following yesterday’s losses amid the positive risk environment and a slew of data releases. There were also comments from Fed's Harker who said the Fed is close to the point where it can hold interest rates in place and thinks they should at least skip raising rates in June.
The euro (EUR/USD) sat at the prior day’s highs with a firm footing on the 1.0700 handle. The British pound (GBP/USD) remained firmer after climbing in tandem with the outperformance in cyclical counterparts. The Japanese yen (USD/JPY) was lacklustre with an early attempt to recoup losses thwarted by resistance at 139.00. The Australian dollar (AUD/USD) extended on gains owing to the risk environment and with AUD/USD also boosted by the more hawkish forecasts regarding the RBA's peak rate.
Fixed Income Markets
10-year US Treasury futures took a breather after yesterday's bull-steepening which was spurred by the falling labor costs and dovish comments from Fed's Harker, while the Senate’s passage of the debt ceiling bill had very little impact on prices and was widely anticipated.
German bund futures held on to their recent gains. Japanese 10-year JGB futures gave back some of their advances but remained in the green after BoJ Governor Ueda’s dovish reiterations and the central bank's presence in the market for its scheduled purchases.
Commodity Markets Crude oil futures were underpinned after the heightened risk appetite and weaker greenback offset the recent OPEC source reports and this week's bearish inventory data. Spot gold was kept afloat amid a lacklustre dollar with the attention shifting to US jobs data. Copper futures were supported amid the constructive mood and strength in China's property sector.
Looking ahead, key economic data releases include the US labor market report for May and rating reviews for Germany, France, and the UK.
US Senate passes US debt ceiling bill
S&P 500 and Nasdaq Composite indexes climb to 9-month highs
Asian stocks higher
US dollar index little changed
Euro and British pound slightly higher
Key economic data releases include US labor market report for May and rating reviews for Germany, France, and the UK.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
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