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Markets update: Equity markets in Asia-Pacific are poised for a weekly gain as central banks globally cut rates, fueling expectations for a similar move by the US Federal Reserve later this year, with investors now awaiting key data points including US non-farm payrolls.
Economic Calendar
Global Markets Roundup: 07 June 2024
London - June 7, 2024 - Asia-Pacific (APAC) equities are set to end a two-week losing streak this Friday, buoyed by central banks around the world initiating rate cuts. This has fueled expectations that the U.S. Federal Reserve will likely follow suit soon. The European Central Bank (ECB) delivered a widely anticipated rate cut on Thursday, following the Bank of Canada's move a day earlier. These join Sweden and Switzerland in easing monetary policy, reigniting the global risk rally and prompting speculation of a September Fed rate cut.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) mirrored global gains, rising 0.3% in early trading. It's on track for a near 3% weekly increase. Hong Kong's Hang Seng Index HSI and Chinese blue chips (3399300) edged up slightly, while Japan's Nikkei NI225 dipped marginally. Trading remained subdued as investors awaited the U.S. nonfarm payrolls report, with expectations of 185,000 jobs added in May.
The benchmark 10-year U.S. Treasury yield (US10Y) held steady, while the two-year yield (US2YT=RR) rose slightly. This follows six consecutive sessions of declines, fueled by data suggesting a potential easing in U.S. labor market conditions. Markets are now pricing in roughly 50 basis points of Fed rate cuts this year, according to FEDWATCH.
In currencies, the dollar index DXY hovered near an eight-week low against a basket of currencies, on track for a weekly loss of about 0.5%. The EURUSD edged 0.05% higher to $1.0895, extending gains from the ECB meeting, despite the bank raising inflation forecasts and keeping future rate cuts uncertain. GBPUSD traded flat around $1.27905 on Friday, The USDJPY dipped against the dollar but remained on track for a weekly gain. Japanese household spending showed a modest year-on-year increase in April, indicating continued consumer caution amid inflation.
In commodities, Oil prices edged lower, with Brent crude futures BRN1! and U.S. West Texas Intermediate crude futures CL1! down slightly. GOLD traded flat around $2,377.13 per ounce. Three-month copper on the LME HG1! edged 0.3% lower to $10,115 per metric ton.
In soft commodities, CBOT soybeans ZS1! lost 0.1% to $11.98-1/2 a bushel, while corn ZC1! traded 0.1% higher at $4.52-1/4 a bushel. The most-active wheat contract on the CBOT ZW1! shed 0.7% to $6.35 a bushel. September robusta coffee RC2! was 0.6% lower at $4,294 a metric ton. July New York cocoa CC1! climbed 4.9% to $9,872 a ton.
Looking ahead today, markets anticipate, German Balance of Trade, German Industrial Production, US Non Farm Payrolls, Canada Unemployment Rate, ECB President Lagarde Speech.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team