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Markets Update: APAC stocks hit a one-month high on Wednesday on the back of surging tech shares, while global markets braced for upcoming inflation data and central bank decisions that could impact interest rates.
Economic Calendar
Global Markets Roundup: 19 June 2024
London – APAC stocks reached a one-month high on Wednesday, driven by a surge in tech shares. The dollar remained stable as soft U.S. retail sales data reinforced expectations of a Federal Reserve rate cut later this year.
Japan's Nikkei NI225Â climbed 0.59%, while the MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) increased by 1%, marking a potential gain of over 4% for June. Tech stocks in the region (.MIAPJIT00NUS) soared over 2% to a record high, fueled by Nvidia's NVDA ascension past Microsoft (MSFT) to become the world's most valuable company on Tuesday. European futures suggested a more subdued opening for European markets, with Eurostoxx 50 futures FESX1! unchanged and FTSE futures Z1! down 0.18%.
Investor attention is focused on the upcoming UK inflation data, which will influence the Bank of England's (BoE) policy decision on Thursday. The central bank is expected to maintain current rates. The inflation report is projected to show a decline in Britain's inflation rate to the BoE's 2% target in May from 2.3% in April, with services CPI anticipated to decrease to 5.5% annually from April's 5.9%.
U.S. retail sales showed minimal growth in May, with previous month's figures significantly revised downwards, indicating sluggish economic activity in the second quarter. This data increased rate cut expectations for September, with traders pricing in a 67% chance of easing. Fed officials are seeking further confirmation of cooling inflation and monitoring the strong labor market for any warning signs as they cautiously approach potential rate cuts by the end of this year.
In currencies, Sterling GBPUSD, down nearly 0.3% this month, last traded at $1.2708. Meanwhile, the euro EURUSD steadied at $1.0736, down 1% in June, pressured by political uncertainty following French President Emmanuel Macron's call for a snap election after his party's defeat in the European Parliament elections. The Japanese yen USDJPY remained steady at 157.835 per dollar, close to the six-week low of 158.255 reached last week, pressured by the significant interest rate differential between Japan and the United States. Minutes from the Bank of Japan's April policy meeting revealed a debate on the impact of a weak yen on prices, with some policymakers suggesting a potential rate hike sooner than expected if inflation overshoots. The dollar index DXYÂ pivoted around 105.28. The AUDUSD edged 0.12% higher to $0.6664. The NZDUSDÂ lost 0.19% to $0.6133.
In commodities and agricultural commodities, oil prices remained steady. Brent crude futures BRN1! edged up 0.06% to $85.38 per barrel, while U.S. West Texas Intermediate crude CL1! held steady at $81.56 per barrel. GOLD was trading 0.1% higher at $2,331.17 per ounce. Three-month copper on the LME HG1! jumped 0.5% to $9,720 per metric ton. September London cocoa CC2! ​​traded 1.4% higher, to 7,686 pounds per metric ton. July raw sugar SB1! ​traded 0.3% lower, at 18.92 cents per lb. September arabica coffee KC2! fell 0.5%, to $2.2625 per lb.
Looking ahead today, UK Inflation Rate, SAR Inflation Rate, Brazil Interest Rate Decision, while U.S. markets are closed.
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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