Morning Wrap (07.06.2024)

Asia-Pacific indices are experiencing a mixed session. Chinese indices are rising by approximately 0.85% to even 1.45%. The Japanese Nikkei 225 index is down 0.10%, while the Australian S&P/ASX200 is up 0.30%.

Futures contracts for European indices indicate an opening session in the Old Continent without a clear direction. The UK100 is up 0.07%, while the DAX is down 0.05%.

In the forex market, volatility is relatively low in the first part of the day. Among the strongest currencies, we can mention CAD and AUD.

Chinese exports increased in May more than expected, raising hopes that the world's second-largest economy will be able to maintain its growth rate even in the face of new tariff threats.

The trade balance amounted to $82.6 billion, higher than the expected $73 billion. Exports increased by 7.6% compared to the previous year, while imports rose by 1.8%.

Japanese households increased spending for the first time in 14 months. Real spending rose by 0.5% in April compared to the previous year, following a 1.2% decline the month before.

The increase in spending is a signal that private consumption may finally stop holding back economic growth. The reading was in line with consensus.

Japanese Finance Minister Shunichi Suzuki said on Friday that currency interventions should be carried out in a cautious manner, after data suggested it had tapped a huge pool of foreign exchange reserves for its recent yen buying operations.

Israeli Prime Minister Benjamin Netanyahu will address American lawmakers in Washington on July 24, Congressional leaders announced on Thursday. He will speak to both houses of Congress - the Senate and the House of Representatives.

In the cryptocurrency market, we are seeing a rebound after yesterday's weaker end of the day when Bitcoin approached support at the $70,000 level. At the time of publication, BTC is up 0.75% to $71,300.