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Markets Update: APAC stocks subdued after Wall St losses, and Wagner Group unsuccessful coup attempt in Russia
Today's important market events:
[EUR] German Ifo Business Climate Index (Jun) - 10:00 CEST
Global Markets Roundup: 26 June 2023
Asian stock markets were mostly subdued on Monday, following losses on Wall Street on Friday. The unsuccessful coup attempt of the Wagner Group in Russia was the main news story over the weekend.
Wagner Group chief Prigozhin was made to accept the proposal by Belarusian President Lukashenko to stop the movement and retreat his troops from Rostov on Don.
Kremlin confirms Lukashenko mediated with Wagner Group, fighters will not be prosecuted
The Kremlin has confirmed that Belarusian President Alexander Lukashenko helped mediate with the Wagner Group, a Russian private military contractor, after a group of its fighters staged a mutiny in the Central African Republic.
The Kremlin said that the fighters who did not take part in the march will sign contracts with the Russian Defense Ministry, while the others will not be prosecuted in recognition of their service.
"Avoiding bloodshed was more important than punishing people," the Kremlin said in a statement.
The Wagner Group is a controversial organization that has been accused of human rights abuses in several countries. The mutiny in the Central African Republic was the first time that members of the group had openly challenged the Russian government.
The Kremlin's decision to not prosecute the Wagner Group fighters is a sign that the Russian government is willing to overlook human rights abuses in order to maintain its influence in the Central African Republic. Here are some additional details:
The mutiny took place on June 22, when a group of Wagner Group fighters refused to obey orders and marched on the capital, Bangui.
The fighters were demanding better pay and conditions.
The mutiny was quickly put down by Russian forces, but it highlighted the growing discontent among Wagner Group fighters.
The Wagner Group is a private military contractor that is closely linked to the Russian government.
The group has been accused of human rights abuses in several countries, including the Central African Republic, Syria, and Libya.
The Kremlin's decision to not prosecute the Wagner Group fighters is a sign that the Russian government is willing to overlook human rights abuses in order to maintain its influence in the Central African Republic.
European equity futures were indicative of a marginally higher open, with the Euro Stoxx 50 up 0.2%.
The cash market closed down 0.8% on Friday. The US dollar index (DXY) was rangebound, while the euro was slightly above 1.09 against the dollar. The pound found a floor at 1.27, and the New Zealand dollar outperformed.
FX markets rangebound as focus shifts to US data
The dollar index (DXY) was rangebound in the absence of any pertinent catalysts from the US. The data calendar is light at the start of the week heading into quarter-end and PCE data on Friday.
EUR/USD traded sideways with price action stuck around the 1.0900 level. The latest ECB rhetoric continued to point to a data-dependent approach for policy rates beyond July.
GBP/USD marginally extended on a rebound off a floor at the 1.2700 level, with the UK seeking ways to contain inflation.
USD/JPY slightly eased back after recent advances. Japanese officials have threatened to respond to excessive moves.
Commodities steady as focus shifts to supply concerns
Crude futures head into the European session relatively flat after the initial upside momentum in WTI crude futures was thwarted by resistance around the USD 70/bbl level. The brief mutiny in Russia had little effect on prices.
OPEC Secretary General said they see global oil demand rising to 110mln bpd by 2045. Saudi Aramco CEO said oil market fundamentals remain generally sound for the rest of the year.
Spot gold traded rangebound as price action reflected the uneventful mood in the dollar.
Copper futures found some mild reprieve on the return of its largest purchaser to the market but with upside capped by the mostly subdued risk appetite.
Key events to watch:
German Ifo Survey
ECB’s Lagarde Speaks at the ECB Sintra Forum
Supply from EU & US
Overall, the mood in markets was cautious, as investors awaited further developments on the Wagner Group situation and the upcoming key events.
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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