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Markets Update: China's Weak Data Spurs Speculation of Stimulus; RBA Stays Hawkish; Nikkei Pauses
Today's important market events:
[CAD] BoC Interest Rate Decision - 16:00 CEST
[USD] Crude Oil Inventories - 16:30 CEST
Global Markets Roundup: 07 June 2023
APAC Stocks Mostly Gain as Investors Await BoC Decision. Asian markets mostly gained on Thursday, following the positive handover from Wall Street where the S&P 500 posted its highest close YTD. Investors were also encouraged by data showing that China's manufacturing activity expanded in May.
However, Chinese trade data mostly disappointed, with exports contracting more than expected in April. This raised concerns about the health of the Chinese economy.
European equity futures were indicative of a marginally higher open, with the Euro Stoxx 50 +0.2% after the cash market closed flat yesterday.
The US dollar index (DXY) hovered just above the 104 mark, the euro (EUR) was capped by 1.07, and the US dollar (USD) continued to pull back from 140 Japanese yen (JPY).
In Australia, the S&P/ASX 200 index was little changed, after weaker-than-expected GDP data was offset by hawkish adjustments to peak rate forecasts.
In Japan, the Nikkei 225 index fell 0.2%, 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 rose 0.3%, while the Shanghai Composite index was little changed.
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 mixed inventory data including a surprise crude draw.
Gold prices traded sideways amid a rangebound dollar and sparse US data calendar.
Copper futures were contained amid the indecisive mood in its largest purchaser after mostly disappointing Chinese trade data continued to suggest weakening global demand.
Looking ahead, highlights include the Bank of Canada (BoC) policy announcement, remarks from ECB's de Guindos, Knot & Panetta, and supply from the UK and Germany. Here are some additional details:
BoC Policy Announcement: The BoC is expected to raise interest rates by 50 basis points on Thursday. This would be the fourth consecutive rate hike by the BoC.
ECB Remarks: ECB policymakers are due to speak on Thursday. Investors will be looking for any clues about the ECB's plans for monetary policy.
Supply from UK and Germany: The UK and Germany are due to release manufacturing PMI data on Thursday. These data will provide an update on the health of the manufacturing sectors in these two countries.
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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