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Markets Update: Global anxieties over prolonged high interest rates sent Asian stocks tumbling and bond yields soaring on Thursday, with all eyes glued to key inflation data later this week that could influence future monetary policy decisions.
Economic Calendar
Global Markets Roundup: 30 May 2024
Global markets experienced a sharp decline on Thursday as rising concerns over prolonged high interest rates spurred investor anxiety. Asian stocks plummeted, and bond yields rose, reflecting heightened anticipation of key inflation data due at the end of the week, which could provide further insights into the future of monetary policy.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dropped 0.5%, following a negative lead from Wall Street and extending its 1.6% decline from the previous session. Japan's Nikkei NI225 tumbled over 1.5%, while U.S. and European futures also declined. EUROSTOXX 50 futures FESX1! eased 0.18%, S&P 500 futures ES1! dipped 0.35%, and Nasdaq futures NQ1! fell 0.45%. In China, blue-chip stocks 399300Â eased 0.25%, mirroring regional trends despite the International Monetary Fund's upgrade to China's GDP growth forecasts for 2024 and 2025. Hong Kong's Hang Seng Index HSIÂ gained 0.17%.
A Federal Reserve survey on Wednesday revealed that U.S. economic activity expanded from early April through mid-May, though firms grew more pessimistic about the future and inflation rose at a modest pace. In Europe, data showed German inflation rising slightly more than forecast to 2.8% in May, ahead of the euro zone's wider inflation reading on Friday. The main focus for markets this week is Friday's U.S. core personal consumption expenditures (PCE) price index report, the Federal Reserve's preferred inflation measure. Expectations are for it to remain steady on a monthly basis.
U.S. Treasury yields remained elevated on Thursday, partly due to a weak debt auction the previous day. The benchmark 10-year yield (US10Y) was last at 4.6197%, while the two-year yield (US2YT=RR) steadied at 4.9830%. Bond yields move inversely to prices. Japanese government bond (JGB) yields also hit multi-year peaks on growing expectations of further rate hikes from the Bank of Japan. The 10-year JGB yield (JP10YTN=JBTC) reached 1.1% in early Asia trade, its highest since July 2011.
In the currency market, the dollar DXY continued its ascent at 105.17, pushing the EURUSD to a two-week low of $1.07955. The USDJPY stood at 157.43. The GBPUSD fell to $1.2696. The AUDUSD edged 0.1% higher to $0.6617. The NZDUSD was trading slightly lower to $0.6108.
In commodities, oil prices rose slightly, recovering some losses from Wednesday amid concerns over weak U.S. gasoline demand and the prospect of higher-for-longer interest rates. Brent crude BRN1! steadied at $83.60 per barrel, while U.S. crude CL1! ticked up 0.03% to $79.25 per barrel. Spot GOLD fell 0.2% to $2,334.15 an ounce. LME copper HG1! lost 0.7% to $10,382.50 a ton, nickel NICKEL1! dropped 0.8% to $20,335, zinc ZNC1! fell 0.2% at $3,097.50, tin FTIN1! traded 1.1% lower to $33,745, and lead LEAD1! edged 0.8% lower to $2,302.
In soft commodities, CBOT soybeans ZS1! climbed 0.1% at $12.14-3/4 a bushel and corn ZC1! edged 0.1% higher at $4.55-1/2 a bushel. The most-active wheat contract on the CBOT ZW1! lost 1.2% to $6.84-1/2 a bushel. July robusta coffee RC1! traded 1.4% higher, at $4,177 a ton. July arabica coffee KC1! lost 0.6% at $2.2945 per lb. August white sugar SF1! fell 1.8% at $543.40 a ton.  July raw sugar SB1! slipped 2%, at 18.35 cents per lb. July London cocoa C1! jumped 6.6%, to 7,544 pounds per ton. July New York cocoa CC1! climbed 6% to $9,309 a ton.
Looking ahead today, markets anticipate, Italy Unemployment Rate, EU Economic Sentiment, EU Unemployment Rate, US GDP Growth Rate QoQ 2nd Est, US Initial Jobless Claims, EIA Crude Oil Stock Stocks Change.
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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