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Markets Update: APAC markets are experiencing a subdued start to the week, reflecting cautious investor sentiment due to a mix of economic factors and political uncertainty in Europe.
Economic Calendar
Global Markets Roundup: 17 June 2024
Muted Start for APAC Equities
APAC markets opened cautiously on Monday, caught between mixed economic signals from China and political uncertainty in Europe. China's blue-chip index fell slightly despite stronger-than-expected retail sales, as weaker industrial output and fixed-asset investment figures painted a picture of a bumpy recovery. Disappointing property data further highlighted ongoing challenges in the sector. The People's Bank of China's decision to hold rates steady surprised some who anticipated a cut. This cautious approach contributed to a slight decline in the broader MSCI Asia Pacific Index ex-Japan. Japan's Nikkei NI225 also slipped, with investors awaiting details on the Bank of Japan's next policy moves.
Europe Braces for French Election
European markets are cautiously optimistic after last week's heavy losses. However, the upcoming French election, which could potentially lead to a far-right victory, is injecting risk aversion and pressuring the euro. The European Central Bank has ruled out emergency measures to stabilize the market, raising concerns about potential eurozone instability. EUROSTOXX 50 futures FESX1! edged 0.3% higher, while FTSE futures Z1! climbed 0.4%.
FX - Eyes on Central Banks and U.S. Data
Focus this week shifts to central bank meetings in Australia, Norway, and the UK, all expected to hold rates steady. The Swiss National Bank, however, might ease policy due to the strong Swiss franc EURCHF. U.S. markets will be closed on Wednesday, but key data points like May retail sales will be released, offering insights into consumer spending. Investors will also be closely monitoring comments from Fed officials regarding potential rate cuts later this year. The EURUSD traded around $1.0698. The USDJPY was trading slightly higher at 157.52. The dollar index DXY, was trading flat at 105.52. GBPUSD was pivoting around $1.2682. The AUDUSD lost 0.2% to $0.6601. The NZDUSD fell 0.2% to $0.6130.
Commodities/Agricultural Commodities
Oil prices CL1! edged lower after a strong rally last week, as the market weighs demand prospects for the summer driving season, WTI lost 18 cents to $78.27 per barrel. GOLD prices remained stable following a significant gain last week, at $2,325 an ounce. Three-month copper on the LME HG1! lost 0.4% at $9,701.50 per metric ton. LME nickel NICKEL1! traded flat at $17,575 a ton, aluminium ALI1! traded 0.3% lower to $2,510, tin FTIN1! rose 0.4% to $32,440, zinc ZNC1! edged 0.5% up to $2,780 and lead LEAD1! climbed 1.2% to $2,165. Corn ZC1! shed 0.6% to $4.47-1/4 a bushel and soybeans ZS1! lost 0.7% to $11.71-1/4 a bushel. CBOT wheat ZW1! fell 1.8% to $6.01-3/4 a bushel.
Looking ahead today markets anticipate, Italy Inflation Rate, Canada Housing Stats, New
York Empire State Manufacturing Index.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team