Global Markets:
- Asian Stock Markets : Nikkei up 1.24%, Shanghai Composite down 0.45%, Hang Seng up 1.16% ASX up 0.19%
- Commodities : Gold at $2343.5 (0.47%), Silver at $30.18 (1.14%), Brent Oil at $86.73 (0.49%), WTI Oil at $83.21 (0.27%)
- Rates : US 10-year yield at 4.441, UK 10-year yield at 4.285, Germany 10-year yield at 2.60
News & Data:
- (EUR) Unemployment Rate 6.4% vs 6.4% expected
- (EUR) Core CPI Flash Estimate y/y 2.9% vs 2.8% expected
Markets Update:
Asia-Pacific markets mostly rose on Wednesday after U.S. Federal Reserve Chair Jerome Powell highlighted progress in controlling inflation. Investors also evaluated regional data, with Japan’s composite purchasing managers’ index (PMI) dropping to 49.7 in June from 52.6 in May, signaling a decrease in private sector activity for the first time in seven months. The decline was driven by a slight reduction in services activity, the first since August 2022, outweighing a marginal increase in manufacturing output.
In China, the Caixin services PMI showed the sector expanded for the 18th consecutive month, though at its slowest pace since October 2023, with the PMI at 51.2 in June, down from 54.0 in May. Traders in Asia are also awaiting June business activity data from India, set for release later today. Japan’s Nikkei 225 rose 1.2%, continuing its surge past the 40,000 mark, while the broader Topix gained 0.4%. South Korea’s Kospi increased by 0.34%, and the Kosdaq Index climbed 0.52%, while Australia’s S&P/ASX 200 was up 0.2%.
Hong Kong’s Hang Seng index rose 1.12% in early trading, bolstered by property stocks, while mainland China’s CSI 300 edged down 0.18%. Chinese tech giant Alibaba announced it had repurchased 613 million ordinary shares, amounting to $5.8 billion, in the quarter ending in June, boosting its stock by 1.7%. In India, the BSE Sensex briefly crossed the 80,000 mark, hitting an all-time high, with the Nifty 50 also reaching a record high of 24,307.25.
Overnight in the U.S., the Dow Jones Industrial Average gained 0.41%, the S&P 500 increased by 0.62%, and the Nasdaq Composite jumped 0.84%, with both the Nasdaq and the S&P 500 hitting record high closes. Tesla shares lifted the S&P 500 after the company surpassed expected deliveries for the second quarter.
Upcoming Events:
- 12:15 PM GMT – USD ADP Non-Farm Employment Change
- 12:30 PM GMT – USD Trade Balance
- 12:30 PM GMT – CAD Trade Balance
- 12:30 PM GMT – USD Unemployment Claims
- 6:00 PM GMT – USD FOMC Meeting Minutes
