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Markets Update: Despite a mixed bag of Asian stock market performances and a softening yen, global investors remain cautious as they await the Federal Reserve's policy decision and upcoming inflation data, with crude oil prices also dipping on supply increase signals.
Economic Calendar
Global Markets Roundup: 08 May 2024
Asian markets exhibited a lack of clear direction on Wednesday, with the dollar maintaining its strength despite lower U.S. Treasury yields. Investors navigated mixed signals from U.S. policymakers and economic indicators regarding the trajectory of Federal Reserve interest rates.
The Japanese yen remained subdued despite the potential for intervention from Japanese authorities to bolster its value. Crude oil prices hovered near two-month lows amid indications of a loosening supply situation and ongoing optimism for a ceasefire in the Middle East conflict. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) slipped by 0.19%, with declines in mainland Chinese blue chips (3399300) partly contributing to the downward pressure. However, Hong Kong's Hang Seng HSI managed to gain 0.52%. Japan's Nikkei NI225 declined approximately 1% as traders opted to cash in on profits following a 1.6% surge in the preceding session. Additionally, the tech-heavy index faced selling pressure driven by a downturn in U.S. chip stocks on Tuesday SOX. U.S. stock futures ES1! remained flat.
Minneapolis Fed President Neel Kashkari hinted on Tuesday that the U.S. central bank might need to refrain from interest rate cuts this year due to persistent inflation. This sentiment contrasted with Fed Chair Jerome Powell's recent remarks, suggesting a prolonged wait to adjust policy despite indications of a weakening labor market in the latest monthly payrolls data. The upcoming consumer price data in a week is anticipated to be closely monitored. U.S. long-term Treasury yields US10Y stood at 4.4651% in Asian trading, rebounding from a nearly one-month low of 4.42% on Tuesday.
In currencies, the yen weakened by 0.16% to 154.94 per dollar USDJPY, notwithstanding concerns voiced by Japan's Finance Minister Shunichi Suzuki regarding the adverse effects of a weakened currency, and the expressed readiness to counter excessive volatility. The U.S. dollar index DXY, rose by 0.09% to 105.51. The EURUSD edged down by 0.12% to $1.07325, while GBPUSD lost 0.14% to $1.24915. The AUDUSDÂ fell 0.33% to $0.65765, and the NZDUSDÂ traded 0.17% lower to $0.5992.
In commodities, crude oil prices extended Tuesday's declines on reports indicating an expected increase in U.S. crude and fuel stocks for the previous week, signaling weakened demand. Brent crude oil futures BRN1! fell by 32 cents, or 0.38%, to $82.84 a barrel. U.S. West Texas Intermediate crude futures CL1! declined by 28 cents, or 0.36%, to $78.10 a barrel. GOLD slipped by 0.16% to around $2,310 per ounce. Three-month copper on the LME HG1! fell 0.8% to $9,954.50 per metric ton.
In soft commodities, the wheat contract on the CBOT ZW1! was 0.19% higher to $6.44 a bushel. Corn ZC1! fell 0.16% to $4.66-1/4 a bushel, while soybeans ZS1! traded 0.38% down to $12.41-3/4 a bushel. July New York cocoa CC2! ​​was 13.5% higher to $8,610 a metric ton. July London cocoa C2! edged 8.4% up to 7,466 pounds per ton. July robusta coffee RC2! was 4.6% lower at $3,378 a ton. July arabica coffee KC2! was 0.7% higher at $1.9665 per lb. July raw sugar SB1! ​traded 2.4%, higher at 19.95 cents per lb. August white sugar SF1! climbed 2.4% at $585.70 a ton.
Looking ahead today, markets anticipate, German Industrial Production, Italian Retail Sales, EIA Crude Oil Stocks Change.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team