_edited_edited.png)
Markets Update: APAC Stocks Trade Mixed
Today's important market events:
[BRL] Brazil Retail Sales (MoM/YoY - May) - 14:00 CEST
[USD] Export Price Index (MoM - Jun) - 14:30 CEST
[USD] Import Price Index (MoM - Jun) - 14:30 CEST
[CAD] Manufacturing Sales (MoM - May) - 14:30 CEST
Global Markets Roundup: 14 June 2023
Asian stocks traded mostly mixed on Friday, following the indecisive lead from Wall Street, where yields continued to decline after the release of the Producer Price Index (PPI).
Fed Governor Christopher Waller, who is a voter on the Federal Open Market Committee (FOMC), said that the Fed will likely need two more 25 basis point (bps) hikes this year and that he favors raising rates at the July FOMC meeting.
European equity futures were indicative of a slightly lower open, with the Euro Stoxx 50 down 0.1%. The dollar index (DXY) remained on a 99 handle, while the euro (EUR/USD) and the pound (GBP/USD) gained a firmer footing above 1.12 and 1.31, respectively.
The Australian market was led by the tech sector, after similar outperformance of U.S. counterparts amid a decline in yields. The announcement that RBA Deputy Governor Bullock will take over from Governor Lowe in September had little effect on markets and was largely seen as policy continuation.
The Japanese market swung between gains and losses, with headwinds from JPY strength and speculation that the BoJ could raise its inflation forecast above the 2% target at its meeting this month, which could pave the way for policy normalization. Former BoJ Director Hayakawa expects the BoJ to tweak yield curve control at the upcoming meeting by potentially raising the 10yr yield ceiling to 1.0%.
The Chinese market was positive, albeit with gains capped, despite the renewed support pledges by the PBoC to keep credit growth appropriate, as well as step up counter-cyclical adjustments and support for key sectors.
US Equity Futures Lack Direction
US equity futures lacked firm direction overnight, as the focus turns to the US big bank earnings. European equity futures are indicative of a slightly lower open with the Euro Stoxx 50 -0.1% after the cash market closed up by 0.7% yesterday.
FX The dollar index (DXY) remained subdued after slipping to a sub-100 level for the first time since April 2022, as softer PPI data supported the case for just one more rate hike from the Fed. However, Fed’s Waller pushed back against this, noting that the September Fed meeting is a live meeting and that he doubts core inflation is structurally lower now. The euro (EUR/USD) marginally extended on its advances and is on course for its biggest weekly gains in 8 months. The pound (GBP/USD) was uneventful overnight and lingered near the prior day’s best levels after climbing north of 1.3100. The Japanese yen (USD/JPY) continued its retreat owing to narrowing yield differentials and amid increasing speculation for potential hawkish forecasts or policy tweaks by the BoJ. The Australian dollar (AUD/USD) was rangebound and largely unaffected by the announcement of the next RBA Governor, while the New Zealand dollar (NZD/USD) mildly outperformed despite the holiday in New Zealand. The PBoC set the USD/CNY mid-point at 7.1318, slightly weaker than expectations of 7.1453.
Fixed Income
10-year U.S. Treasury futures were contained but held on to recent gains, following the recent bull-steepening in yields after the release of inflation data.
Bund futures were near the prior day's best levels, with prices stuck around the 133.00 level.
10-year Japanese government bond (JGB) futures saw early pressure amid hawkish speculation surrounding the Bank of Japan's (BoJ) upcoming meeting, but then gradually recovered most of the losses.
Commodities
Crude oil futures were quiet and slightly eased back from multi-month highs, after rallying yesterday on the back of a weaker dollar, a cooler inflation print, and reports that Libya's Sharara oil field is to be halted due to protests.
Libya's Sharara oil field (300,000 barrels per day) is to be halted due to protests, while production in Libya's 108 oilfield was also shut down, according to Reuters citing oilfield engineers.
Qatar set September-loading Al-Shaheen crude term prices at USD 1.68/barrel above Dubai quotes.
Spot gold traded sideways despite the continued weakness in the greenback.
Copper futures plateaued overnight and held on to the recent data-inspired gains.
Looking Ahead Highlights for the day include U.S. import and export prices, University of Michigan consumer sentiment (preliminary), Swedish CPI, the U.S. Treasury dealer meeting agenda, and earnings from UnitedHealth, JPMorgan, Wells Fargo, BlackRock, and Citigroup.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
Commentaires