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Markets Update: Despite the wait-and-see approach from the Reserve Bank of Australia and upcoming central bank meetings, Asian and European markets rose on Tuesday, buoyed by Wall Street's gains and anticipation of policy pronouncements from Federal Reserve officials.
Economic Calendar
Global Markets Roundup: 18 June 2024
APAC stocks followed Wall Street's upward trend on Tuesday, buoyed by anticipation of statements from Federal Reserve officials later in the day. The Australian dollar remained stable, and domestic shares climbed ahead of the country's interest rate decision.
Easing concerns over political instability in Europe further lifted market sentiment, with EUROSTOXX 50 FESX1! futures rising 0.6%, recovering some of last week's significant losses. Similarly, FTSE futures increased by 0.43%.
In a wait-and-see approach, the Reserve Bank of Australia (RBA) opted to hold interest rates at 4.35% at its June policy meeting. This decision comes despite upward revisions to household consumption data, indicating stronger spending than previously thought. However, the RBA tempered this positive sign by acknowledging that recent monthly inflation figures show no improvement.  Particularly concerning is persistent inflation within the service sector.
Elsewhere, MSCI's broadest index of Asia-Pacific shares outside Japan increased by 0.68%, bolstered by an overnight rally on Wall Street. Japan's Nikkei NI225 advanced by 0.83%, Hong Kong's Hang Seng Index HSI edged up 0.14%, and Chinese blue-chips rose 0.17%.
Several central banks, including those in Norway, the UK, and Switzerland, are scheduled to meet this week. The consensus is that Norway and the UK will maintain their rates, while the Swiss National Bank is expected to implement a 25 basis point cut.
In the United States, six Federal Reserve officials are set to speak on Tuesday, potentially offering further insights into the U.S. interest rate outlook following last week's policy decision. Futures suggest approximately 45 basis points of Fed cuts are anticipated for the remainder of 2024.
In currency markets, the dollar had a mixed performance, marginally declining USDJPY by 0.04% to 157.68 yen. The euro EURUSD fell slightly to $1.0729, while the British pound GBPUSD rose by 0.04% to $1.27105. China's onshore yuan USDCNY hovered near a seven-month low at 7.2554 per dollar, influenced by mixed economic data indicating the need for additional support from Beijing to bolster the economy. The AUDUSD was trading higher at $0.6610. The NZDUSD traded lower to $0.6118.
In comoodities, Oil prices edged higher due to a positive demand outlook and investor confidence that OPEC+ might pause or reverse plans to increase supplies in the fourth quarter. Brent crude BRN1! futures were up 0.11% at $84.34 per barrel, while U.S. WTI CL1! crude futures firmed at $80.34 a barrel. GOLD also gained, rising 0.13% to $2,321.99 an ounce.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team