Morning wrap (06.06.2024)

Indices in the US ended yesterday's session with strong gains. Both the US500 and US100 contracts closed at new historic highs. The US500 gained almost 1.20% to 5360 points. The US100, on the other hand, rose by as much as 2.00% above the 19000 point level. 

Asia-Pacific indices had an upward session, continuing the gains on Wall Street. Indexes from China are up around 0.50-0.60%. Japan's Nikkei 225 index gains 0.80% and Australia's S&P/ASX200 is trading 0.30% higher.

European index futures also show a slightly higher opening to the cash session. The UK100 gains 0.15% and the DAX gains 0.05%.

Nvidia gained 5.16% yesterday at the close of the session to US$1224 thereby surpassing its capitalisation of US$3.010 trillion and surpassing Apple's capitalisation of US$3.000 trillion. 

In the forex market, volatility is relatively low during the first part of the day. Among the strongest currencies, we can mention the Swiss franc (CHF), which is gaining around 0.10-0.20%. 

The USD is slightly weaker in the first part of the day losing around 0.10-0.20%. US bond yields, meanwhile, are rebounding after yesterday's sharp declines.

Australia's trade balance data for April showed an increase in the surplus, which can be attributed to a drop in imports after several months of growth. The surplus came in at AUD6.5 billion (A$4.34 billion), compared with a downwardly revised AUD4.8 billion in March and beating market forecasts of A$5.4 billion.

Bank of Japan Governor Kazuo Ueda said inflation expectations are gradually rising, but remain well below 2%. 

Bank of Japan representative Toyoaki Nakamura said Japanese inflation could fall below the central bank's 2% target next year if consumption stagnates. Nakamura maintains his dovish stance, highlighting the uncertainty over the timing of further interest rate rises.

Goldman Sachs' Global Markets Division Managing Director, Scott Rubner, predicts a significant influx of funds into the equity market in Q3 of this year. He anticipates that passive equity allocations will drive a substantial amount of money into the stock market starting in early July, propelling the current rally higher through the early part of the summer.

The cryptocurrency market is seeing consolidation at the highest levels. Bitcoin is trying to break through the resistance level around USD 71000-72000. At the time of publication, BTC is losing 0.30% to USD 70900.