Economic Indicators & Central Banks:
- The NASDAQ was the star as the markets, of it rallied 0.59% to close at 17,019.88 for a fresh record high. And it is its first time over the 17,000 level. A 7% pop from Nvidia supported.
- Fed Kashkari said he wants to see “many more months” of positive inflation data before a rate cut.
- German GfK consumer confidence improves further. All signs are that consumption trends should improve with the rise in real-disposable income as falling inflation, rising wages and the prospect of rate cuts boost sentiment.
- US consumer confidence beat assumptions. Confidence has displayed only a slight updraft since mid-2022, after a prior deterioration from mid-2021 peaks.
Asian & European Open:
- European & US stocks slipped earlier today against a backdrop of rising government bond yields. DAX fell 0.2% and FTSE lost 0.06%. Traders are pricing in that the ECB will lower its deposit rate when policymakers meet next week.
- Asia stock market dipped as Chinese tech and property companies declined. The Hang Seng Tech index shed 2.3%.
Financial Markets Performance:
- The USDIndex is steady and Treasury yields also held firm ahead of key inflation data, which could offer more clarity on the Fed rate trajectory.
- The USDJPY fell to 156.88 nearing levels that prompted suspected interventions by Tokyo in late April and early May. Currently rebounded again above 157. Japanese officials might issue verbal warnings again, but without tangible action, the USDJPY could march towards late April levels
- The EURUSD dipped to 1.0830 but still marked its first monthly gain in 2024. Meanwhile, the GBPUSD was last at 1.2760.
- Gold steadied at $2350 per ounce as markets wait for key US PCE numbers at the end of the week. Bullion hit a record high early last week, only to post the sharpest weekly correction this year as the Fed reiterated the “high-for-longer” message.
- Oil broke the $80 barrier as Middle East tensions have picked up again. Markets are now looking ahead to the release of key US inflation data and the OPEC+ meeting on June 2.
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Andria Pichidi
Market Analyst
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