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Markets Update: Asian and European stocks surged to record highs on Thursday as easing U.S. inflation data fueled expectations of interest rate cuts globally, with the exception of China whose markets remained subdued due to upcoming economic data and trade war jitters.
Economic Calendar
Global Markets Roundup: 11 July 2024
Global stocks rose on Thursday, with markets from Tokyo to New York reaching record highs as traders awaited U.S. data expected to show easing inflation, potentially paving the way for rate cuts in September. Bonds and the dollar remained steady, keeping the yen on the weak side at 161 per dollar, near its lowest levels in decades.
Heavyweight technology shares propelled the S&P 500 up 1% overnight to a sixth consecutive record high. In Asia, Japan's Nikkei NI225 index rose 1% to a record 42,426. MSCI's broadest index of Asia-Pacific shares outside Japan also gained 1%, reaching a two-year high. Taiwan stocks hit a record peak, and Australia's ASX 200 XJO was close to its all-time high. China stocks rose on Thursday but ongoing disappointing data and talk of tariffs in major export markets have hindered sustained rallies. China's GDP print is due on Monday. Hong Kong's Hang Seng index rose 1%, while on the mainland, the blue-chip CSI 300 climbed 0.4%, remaining close to Tuesday's four-and-a-half-month low.
U.S. Federal Reserve Chair Jerome Powell told lawmakers that "more good data" would support the case for the U.S. central bank to cut interest rates. Futures pricing suggests about a 75% chance of a cut in September. Economists forecast annual U.S. CPI to have slowed to 3.1% in June from 3.3% in May. The Bank of Korea maintained interest rates, with Governor Rhee Chang-yong indicating it was time to prepare for potential rate cuts. A shift in tone at the Reserve Bank of New Zealand led to a sharp re-pricing in rate-cut expectations, with the benchmark two-year swap rate diving 18 basis points and the currency sliding.
In currency markets, the euro EURUSD ticked higher to $1.0835. Sterling GBPUSD reached a one-month high of $1.2854 as the Bank of England's chief economist had sounded vaguer about the timing of rate cuts than traders had expected. China's yuan steadied at 7.2738 per dollar, barely stronger than an almost eight-month low made on Wednesday. The yen USDJPY hovered at 161.58 per dollar. Data showed Japan’s core machinery orders unexpectedly fell for a second month, challenging expectations for interest rate increases. The New Zealand dollar NZDUSD found support at its 200-day moving average, trading at $0.6095. The Australian dollar AUDUSD rose 0.2% to a six-month high of $0.6763.
In commodities and agricultural commodities, oil prices edged higher on signals of strong U.S. gasoline demand. Brent futures BRN1! rose 35 cents, or 0.4%, to $85.43 a barrel. U.S. crude CL1! climbed 36 cents, or 0.5%, to $82.47 a barrel. GOLD inched 0.2% higher to $2,373 an ounce. CBOT corn ZC1! edged 0.55% higher to $4.09-1/2 a bushel.  September arabica coffee KC2! lost 2.6% to $2.4355 per lb.
Looking ahead, markets anticipate, UK GDP, UK Industrial Production, German Inflation Rate, US CPI, US Inflation Rate, US Initial Jobless Claims.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team