Global Markets:
- Asian Stock Markets : Nikkei up 1.00%, Shanghai Composite up 0.97%, Hang Seng up 1.78% ASX up 0.93%
- Commodities : Gold at $2384.5 (0.27%), Silver at $31.22 (0.64%), Brent Oil at $85.23 (0.47%), WTI Oil at $82.91 (0.57%)
- Rates : US 10-year yield at 4.284, UK 10-year yield at 4.159, Germany 10-year yield at 2.535
News & Data:
- (USD) Crude Oil Inventories -3.4 M vs 0.7M expected
Markets Update:
Japan’s Nikkei 225 crossed the 42,000 mark for the first time amid a broader rise in Asia-Pacific markets on Thursday, driven by optimism over potential Federal Reserve rate cuts after a rally in U.S. Big Tech. The Nikkei gained 0.97%, led by technology stocks, while the Topix rose 0.7%, both reaching new peaks. Core machinery orders in Japan surged 10.8% year-on-year, surpassing expectations, though they fell 3.2% month-on-month, indicating economic fragility that could complicate the Bank of Japan’s monetary policy plans.
Japanese automaker Toyota saw gains in India as the state of Uttar Pradesh waived levies on hybrid cars, reducing their price by 10%. South Korea’s Kospi rose 0.75% with the Bank of Korea maintaining rates at 3.5% for the 12th consecutive time, while Australia’s S&P/ASX 200 climbed 1.00%. Hong Kong’s Hang Seng index surged 1.71%, and the mainland Chinese CSI 300 index increased by 0.35%.
In the U.S., all three major indexes rose overnight, with the S&P 500 and Nasdaq Composite gaining 1.02% and 1.18%, respectively. The S&P broke the 5,600 mark for the first time, marking its 37th record close in 2024, while the Nasdaq achieved its 27th record close this year. The Dow Jones Industrial Average increased by 1.09%. Chip stocks were among the top performers, with Taiwan Semiconductor Manufacturing Company rising 3.5%, Qualcomm up 0.8%, Broadcom gaining 0.7%, and Nvidia climbing 2.7%.
Expectations of rate cuts fueled these gains, with predictions that the June inflation rate would be 3.1% year over year, lower than May’s 3.3%. The core inflation rate, excluding food and energy prices, is anticipated to rise by 3.4% since June last year, compared to a 3.3% increase in May.
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