Global Markets:
- Asian Stock Markets : Nikkei down 0.60%, Shanghai Composite up 0.31%, Hang Seng down 1.49% ASX down 0.51%
- Commodities : Gold at $2330.5 (0.17%), Silver at $29.48 (0.861%), Brent Oil at $82.13 (0.65%), WTI Oil at $78.71 (0.83%)
- Rates : US 10-year yield at 4.40, UK 10-year yield at 4.27, Germany 10-year yield at 2.604
News & Data:
- (CAD) Building Permits m/m 20.5% vs 4.9% expected
Markets Update:
Asia-Pacific markets were mixed on Wednesday as investors assessed inflation data from the region. China’s inflation rate for May came in at 0.3%, below the 0.4% expectation, remaining unchanged from April. Following this announcement, the Hong Kong Hang Seng index fell 1.45% while the mainland Chinese CSI 300 declined 0.17%. Investors in Asia are also closely watching the U.S. Federal Reserve’s upcoming decision, set to follow the release of the country’s May inflation report.
India’s inflation rate is forecasted to slightly rise to 4.89%, up from April’s 4.83%, according to a Reuters poll. Meanwhile, the Taiwan Weighted Index gained 1.2%, reaching an all-time high due to positive sentiment around Apple’s new AI features for its operating system. Taiwan Semiconductor Manufacturing Corp and Hon Hai Precision Industry (Foxconn) both saw gains of over 3%.
In Japan, the Nikkei 225 slipped 0.58% and the Topix dropped 0.74%, despite the country’s corporate goods inflation rate accelerating to 2.4% in May, its fastest rate since August. South Korea’s Kospi rose by 0.5% and the small-cap Kosdaq increased by 0.3%, while Australia’s S&P/ASX 200 fell 0.5%, extending its losses from Tuesday.
In the U.S., the S&P 500 and the Nasdaq Composite reached new closing highs, driven by Apple’s surge to a record high. The broad market index gained 0.27%, closing at 5,375.32, and the Nasdaq Composite added 0.88%, ending at 17,343.55. Conversely, the Dow Jones Industrial Average dropped by 0.31%. Investors seemed to be taking profits from Nvidia and shifting their focus to Apple, which recently unveiled new features that could prompt a wave of iPhone upgrades. Apple hit a new record high, jumping nearly 7.3%, while Nvidia saw a 0.7% decline.
Upcoming Events:
- 12:30 PM GMT – USD Core PPI m/m
- 12:30 PM GMT – USD PPI m/m
- 6:00 PM GMT – USD Federal Funds Rate
- 6:00 PM GMT – USD FOMC Economic Projections
- 6:00 PM GMT – USD FOMC Statement
- 6:00 PM GMT – USD FOMC Press Conference
