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Markets Update: The global market witnessed mixed performance on Tuesday with the US dollar reaching a near 38-year high against the yen due to rising Treasury yields and potential second Trump presidency, while European markets found solace in a united front against far-right French party and Asian markets displayed a lackluster performance with some gains in select sectors.
Economic Calendar
Global Markets Roundup: 2 July 2024
On Tuesday, the U.S. dollar approached a nearly 38-year high against the yen, driven by a surge in Treasury yields as investors weighed the possibility of a second Donald Trump presidency. Meanwhile, the euro held firm as French political parties united to thwart the far-right National Rally (RN) from gaining power.
Asian equities showed mixed performance, while crude oil prices edged higher after a strong rally in the previous session. Later today, U.S. Federal Reserve Chair Jerome Powell is set to speak at an event hosted by the European Central Bank, focusing attention on U.S. monetary policy amid several closely watched employment reports, including Tuesday's JOLTS job openings data, a Fed favorite.
In Asia, stock markets opened with a lackluster performance, showing no clear direction. Japanese banks lifted the Nikkei NI225 by 0.6% amid rising domestic bond yields, while property shares supported Hong Kong's Hang Seng HSI, which rose 0.3%. However, mainland blue chips remained flat, Taiwan's tech-heavy benchmark declined by 0.8%, and South Korea's Kospi fell by 0.6%. MSCI's broadest index of Asia-Pacific shares outside Japan dipped by 0.2%.
In currencies, the yen's weakness has heightened trader vigilance for potential Japanese intervention, especially after authorities spent approximately 9.8 trillion yen ($60.65 billion) between late April and early May when the currency dropped to 160.82 per dollar USDJPYÂ . The euro EURUSD remained steady against the greenback, easing 0.07% to $1.0733 after reaching $1.0776 on Monday, the highest level since June 13. Investors were relieved that Marine Le Pen's anti-immigrant, eurosceptic RN party did not secure a larger share of the first-round vote over the weekend. Sterling GBPUSD traded around $1.2641 level. The dollar traded slightly higher at 161.56 yen USDJPYÂ on Tuesday, close to the overnight peak of 161.72 yen, a level not seen since December 1986. The currency pair is highly sensitive to U.S. yields, and the benchmark 10-year Treasury yield climbed nearly 14 basis points to 4.479% at the start of the week. The dollar index DXYÂ edged 0.057% higher at 105.9. The AUDUSDÂ traded aroun $0.6650 level, while the NZDUSDÂ lost 0.3% at $0.6075.
In commodities and agricultural commodities, crude oil prices ticked higher following Monday's gains of around 2%, coinciding with the start of the northern hemisphere's summer driving season. Brent futures BRN1! increased by 0.21% to $86.78 per barrel, building on a 1.9% overnight rally, while U.S. WTI CL1! crude rose by 0.13% to $83.49, extending a 2.3% jump from the previous session. Spot GOLD was trading 0.2% lower at $2,326.82 per ounce. Wheat ZW1! lost 0.4% to $5.87-3/4 a bushel. September London cocoa CC2! ​​​traded, and closed 3% lower, to 6,170 pounds per metric ton. September arabica coffee KC2! dropped 0.9% at $2.2485 per lb.
Looking forward today, markets anticipate, Italy Unemployment Rate, EU Inflation Rate, Fed Chair Powell Speaks, US JOLTs Job Openings, Brazil Balance of Trade.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team