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Markets Update: APAC stocks mostly fell on Thursday as hawkish central bank signals and hotter-than-expected UK inflation dampened hopes for aggressive rate cuts, though oil prices slipped and US stock futures rose on upbeat Nvidia earnings.
Economic Calendar
Global Markets Roundup: 23 May 2024
APAC equities outside Japan closed mostly lower on Thursday as investors recalibrated expectations for central bank policy after hawkish signals from major economies. The MSCI broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) shed 0.57%. Australia's S&P/ASX 200 XJO led the decline, slumping 0.8% amid a pullback in commodity prices.
Geopolitical jitters persisted after China launched military drills near Taiwan. However, Taiwan's TAIEX bucked the trend, rising 0.3%. Recent pronouncements from the Federal Reserve, Bank of England, and Reserve Bank of New Zealand dampened hopes for aggressive rate cuts this year. The focus has shifted towards fighting persistent inflation.
U.S. stock futures, however, found some support after Nvidia's (NVDA) upbeat earnings forecast. S&P 500 futures (ES1!) gained 0.3%, while Nasdaq futures NQ1! rose 0.57%. Japan's Nikkei NI225 climbed 0.6%, buoyed by a weaker yen. Sterling and the New Zealand dollar hovered near two-month highs.
Data revealed hotter-than-expected UK inflation, prompting investors to scale back bets on a Bank of England rate cut next month. The Reserve Bank of New Zealand also surprised markets, signaling rate cuts were unlikely until 2025. Elsewhere in Asia, profit-taking dragged Hong Kong's Hang Seng HSI down 1.5%, while China's blue-chip index (3399300) dipped 0.3%.
In currencies, the USDJPY It was trading last at 156.85 per dollar. The GBPUSD was trading around $1.2721. The dollar index DXY, was trading flat around 104.85. The NZDUSD traded higher at $0.6102. The EURUSDÂ jumped 0.08% to $1.08305. The AUDUSD was hovering around $0.6619.
In commodities, Oil prices slipped on the day, with brent crude BRN1! traded 0.82% lower to $81.23 a barrel, while U.S. crude CL1! lost 0.9% to $76.87 per barrel. GOLD prices retreated 0.25% to $2,372.28 an ounce as the prospect of higher U.S. rates dimmed its appeal. Three-month copper on the LME HG1! was trading 0.4% lower to $10,373 per metric ton. LME aluminium ALI1! lost 0.3% to $2,628.50 a ton, nickel NICKEL1! fell 0.7% to $20,220, zinc ZNC1! edged 0.5% lower to $3,046.50, tin FTIN1! traded 0.2% lower to $33,445, and lead LEAD1! was 0.6% lower to $2,300.50.
In agricultural commodities, the most-active wheat contract on the CBOT ZW1! was 0.2% higher at $6.94-1/2 a bushel. Corn ZC1! jumped 0.1% to $4.61-1/2 a bushel, while soybeans ZS1! fell 0.1% to $12.44-3/4 a bushel. July raw sugar SB1! was 1.8% down at 18.23 cents per lb. August white sugar SF1! fell 0.5% at $541.50 a ton. July London cocoa C1! jumoed 2.2%, to 6,243 pounds per ton. July New York cocoa CC1! climbed 1.9% to $7,536 a ton. July arabica coffee KC1! edged 1.5% up to $2.2045 per lb. July robusta coffee RC2! rose 4.9% to $3,917 a metric ton.
Looking ahead today, French, German, EU, HCOB Composite PMI and Manufacturing PMI, UK S&P Global PMI, EU Negotiated Wage Growth, US Initial Jobless Claims, EU Consumer Confidence, US New Home Sales.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team