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Markets Update: Financial markets experienced mixed performance on Tuesday as Asia-Pacific shares dipped slightly while European investors awaited a potential rate cut by the ECB, with the focus in the US on Treasury yields and upcoming Federal Reserve decisions.
Economic Calendar
Global Markets Roundup: 04 June 2024
Asia-Pacific share markets edged lower on Tuesday as global investors reassessed the strength of the U.S. economy amid further weakening of its manufacturing sector.
The MSCI Asia-Pacific ex-Japan index (.MIAPJ0000PUS) dipped 0.1%, following modest gains in U.S. stocks from the previous session. Despite this, the index remains up 1.6% for the month. Australian shares (XJO) declined by 0.21%, while Japan's Nikkei index (NI225) dropped 0.77%. In early trading, Hong Kong's Hang Seng Index (HSI) remained flat, and China's CSI300 Index (3399300) decreased by 0.16%.
Yields on benchmark U.S. 10-year Treasury notes (US10Y) stood at 4.4001%, slightly down from Monday's 4.402%. The two-year yield (US2YT=RR), influenced by expectations of higher Federal Reserve rates, touched 4.8184%, unchanged from its previous close. On Monday, U.S. Treasury yields hit their lowest in two weeks following a second consecutive month of declining manufacturing activity. The 2-year yield fell by 6 basis points, while the 10-year yield dropped by 11 basis points.
In Europe, investors are anticipating the European Central Bank to lower the benchmark rate by 25 basis points to 3.75% on Thursday. On Wall Street, the S&P 500 (SPX) inched up 0.1%, the Dow Jones Industrial Average (DJI) fell 0.3%, and the Nasdaq Composite (IXIC) rose 0.6%. In India, Prime Minister Narendra Modi is poised to secure a record-equalling third term as votes are counted from the world's largest election, with 642 million ballots cast. Analysts predict a favorable outcome for India's financial markets, driven by expectations of further economic reforms.
In currency markets, the USDJPY rose to 156.35. The EURUSD increased by 0.1% to $1.0912, having gained 0.65% over the month. The GBPUSDÂ last trading at $1.2818. The dollar index DXY, fell to 104. The USDCHF reached 0.8947.
In commodities, U.S. crude oil (CL1!) dropped 0.42% to $73.91 per barrel, while Brent crude (BRN1!) declined to $78.05 per barrel. Both benchmarks hit four-month lows on Monday after OPEC+ decided to unwind some production cuts starting in October. GOLD prices edged higher, trading at $2,350.73 per ounce. Three-month copper on the LME HG1! climbed 0.5% to $10,190.50 per metric ton. LME aluminium ALI1! rose 0.6% to $2,677.50 a ton, nickel NICKEL1! climbed up 0.1% at $19,435, zinc ZNC1! increased 0.7% to $2,964, lead LEAD1! was 0.3% higher at $2,294, and tin FTIN1! jumped 1.1% to $32,690.
In soft commodities, July robusta coffee RC1! traded up 3.7%, at $4,272 a metric ton. July arabica coffee KC1! climbed 1.9% at $2.2655 per lb. September London cocoa C2! ​was 2.5% higher, to 7,086 pounds per ton. July New York cocoa CC1! edged 4.8% to $9,775 a ton. The most-active corn contract on the CBOT ZC1! lost 0.39% to $4.41-3/4 a bushel. Soybeans ZS1! edged 0.13% to $11.86-1/4 a bushel. Meanwhile, wheat ZW1! fell 0.11% to $6.72 a bushel. August white sugar SF1! climbed 2% to $552.30 a ton. July raw sugar SB1! traded 2.6% higher, at 18.78 cents per lb.
Looking ahead today, markets anticipate, German Unemployment Change, South Africa GDP Growth Rate, Brazil GDP Growth Rate, US JOLTs Job Openings.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team