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Markets Update: Asian Markets Traded Mixed as Investors Brace for Risk Events
Today's important market events:
No major events recorded/expected.
Tomorrow (Tuesday, 13 Jun):
German CPI, US CPI, while BoE Gov Bailey Speaks.
Global Markets Roundup: 12 June 2023
Asian stocks opened mixed on Monday as investors remained cautious ahead of a risk-packed week. The Shanghai Composite Index was down 0.2%, while the Hang Seng Index was up 0.1%. US equity futures were flat overnight, while European equity futures were indicative of a marginally higher open.
The cautious mood was evident in the currency markets, where the US dollar index was marginally higher. The Japanese yen was indecisive after early upside. Several Chinese lenders cut yuan deposit rates from Monday, which follows similar action by China's largest banks on Friday. The move is seen as an attempt to support the slowing economy.
The Nikkei 225 initially outperformed and tested the 32,500 level, but gains were pared amid weakness in the healthcare and property sectors. The Hang Seng and Shanghai Composite were subdued, with the latter pressured by a warning from Goldman Sachs on China's property sector.
Currency Markets The US dollar index was marginally higher amid the cautious mood, but price action was kept within a thin range. The euro was lacklustre, while the pound took a breather from recent gains. The Japanese yen was indecisive.
Fixed Income 10-year Treasury futures were rangebound with a non-committal tone heading into the plethora of risk events. Bund futures traded sideways, while 10-year JGB futures remained afloat.
Commodities Crude oil futures were on the backfoot owing to the flimsy risk appetite and with prices also weighed after Goldman Sachs cut its forecasts for December Brent and WTI crude oil prices. Saudi Arabia's Energy Minister said that demand for oil in China is still growing and that Saudi and OPEC+ are more interested in doing a regulator job. Spot gold was rangebound in tandem with the uneventful dollar.
Copper futures were lower amid the cautious mood and Goldman Sachs warning on China's property sector.
Overall, the mood in markets is likely to remain cautious this week as investors await more data on the global economy and the outcome of key risk events.
Looking ahead, investors will be closely watching the US NY Fed SCE, Supply from EU & US for any signs of economic weakness. Here are some of the key events that could impact markets this week:
US NY Fed SCE: The New York Fed will release its survey of consumer expectations on Wednesday. This report is often seen as a leading indicator of economic growth.
Supply from EU & US: The European Union and the United States are expected to release data on energy supply this week. This data could impact commodity prices.
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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