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Markets Update: RBA Delivers Second Surprise Rate Hike, Asia Markets
Today's important market events:
[GBP] Construction PMI (May) - 10:30 CEST
[CAD] Ivey PMI (May) - 16:00 CEST
Global Markets Roundup: 06 June 2023
APAC Stocks Mixed After Subdued US Performance, Apple Announces New VR Headset, RBA Hikes Rates Asian stocks were mixed on Thursday, with price action mostly rangebound following on from the subdued performance stateside.
The MSCI Asia Pacific Index was down 0.2%, while Japan's Nikkei 225 index was up 0.1%.
The subdued performance in Asia came as investors digested the news that the US Federal Reserve is likely to raise interest rates by 75 basis points at its next meeting in July. This news weighed on risk sentiment and led to a sell-off in US stocks on Wednesday.
In other news, Apple (AAPL) announced its new VR headset, Apple Vision Pro, which augments reality with the real world. The headset is expected to be released in 2023.
The Reserve Bank of Australia (RBA) delivered a surprise 25 basis points rate hike on Tuesday, taking the cash rate to 0.85%. The RBA said that it is committed to "normalizing" monetary policy in order to bring inflation back to its target range of 2-3%.
European equity futures are indicative of a contained open with the Euro Stoxx 50 flat after the cash market closed down 0.7% yesterday. The US dollar index (DXY) remains below 104, the Australian dollar (AUD) is leading post-RBA, and the euro (EUR) is holding onto the 1.07 handle.
In Australia, the S&P/ASX 200 index fell 0.3%, after the Reserve Bank of Australia (RBA) raised interest rates by 25 basis points to 4.10%. The RBA said it was prepared to take further action to bring inflation under control.
In Japan, the Nikkei 225 index rose 0.1%, after data showed that Japanese household spending fell in April. The decline was attributed to higher prices and a decline in real incomes.
In Hong Kong, the Hang Seng index fell 0.2%, while the Shanghai Composite index rose 0.1%.
US stock futures were little changed, as investors awaited the release of more economic data on Friday.
Commodity Markets
Oil prices were little changed, after rising sharply on Wednesday following reports that Saudi Arabia was ready to increase production.
Gold prices held steady, after hitting a two-week high on Wednesday.
Copper prices were lower, as investors weighed the prospect of slower economic growth against rising demand for the metal.
Looking ahead, highlights for the day include Eurozone retail sales, supply from the UK, Germany, and the European Union syndication.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team