Global Markets:
- Asian Stock Markets : Nikkei up 0.58%, Shanghai Composite down 0.75%, Hang Seng down 0.87% ASX down 0.80%
- Commodities : Gold at $2337.5 (0.37%), Silver at $29.88 (-0.14%), Brent Oil at $84.13 (-0.09%), WTI Oil at $80.61 (-0.01%)
- Rates : US 10-year yield at 4.258, UK 10-year yield at 4.103, Germany 10-year yield at 2.406
News & Data:
- (CAD) Core Retail Sales m/m 1.8% vs 0.5% expected
- (CAD) Retail Sales m/m 0.7% vs 0.7% expected
- (USD) Flash Services PMI 51.7 vs 51.0 expected
- (USD) Existing Home Sales 55.1 vs 53.4 expected
Markets Update:
Asia-Pacific markets mostly declined on Monday as investors anticipated inflation data from Australia and Japan later in the week. Australia’s May consumer price index, set to be released on Wednesday, is under close scrutiny after Reserve Bank of Australia Governor Michelle Bullock mentioned that the central bank considered raising rates at its last meeting. If the inflation figures exceed expectations and prompt the RBA to hike rates, it would be the first significant Asia-Pacific central bank to do so in a climate where investors are generally expecting rate cuts, with the exception of Japan. The RBA has two upcoming inflation reports to review — on June 26 and July 31 — before its next meeting on August 6. Australia’s S&P/ASX 200 fell by 0.80%.
Japan’s Nikkei 225 rose by 0.54%, while the Topix increased by 0.26%, making them the only major benchmarks in Asia to post gains. On Monday, the Bank of Japan disclosed that it discussed the possibility of raising interest rates during its June monetary policy meeting. However, it noted that any policy rate changes should be considered only after economic indicators, such as a clear rebound in the CPI inflation rate and rising medium to long-term inflation expectations, support such a move. Last week, BOJ Governor Kazuo Ueda reportedly informed the country’s parliament that the central bank might raise rates as early as its July meeting.
Hong Kong’s Hang Seng index dropped by 1.1%, and mainland China’s CSI 300 decreased by 0.5%. China reported a 2.8% decline in fiscal revenue for the first five months of 2024 compared to 2023, a further drop from the 2.7% year-on-year decrease recorded from January to April. For May alone, fiscal revenue was down 3.2% year-on-year, a slight improvement from the 3.7% decline in April. South Korea’s Kospi slipped by 0.82%, and the small-cap Kosdaq fell by 1.08%.
On Friday in the U.S., the S&P 500 ticked lower as shares of market bellwether Nvidia pulled back for a second day. Nvidia shares declined by 3.2%. On Thursday, the stock hit an all-time high before closing more than 3% lower. Overall, the S&P fell by 0.16%, while the Nasdaq Composite dipped by 0.18%. The Dow Jones Industrial Average edged up by 0.04%.
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