Morning wrap (12.06.2024)

8:44 am 12 June 2024

  • U.S. indices closed yesterday's session mostly higher; the Nasdaq 100 gained 0.7%, while the S&P 500 gained nearly 0.3% and closed at a new historic high. At the same time, the Dow Jones retreated 0.3% and some weakness was also evident in the Russell 2000 stock benchmark
  • Stocks in the banking sector of J.P. Morgan and Citigroup, among others, posted fairly sizable declines yesterday, but the technology sector fared well led by a more than 7% rise in Apple shares as the company expects more AI catalysts to its business
  • Following a large auction of $39 billion worth of U.S. Treasury bonds, we could see slightly rise in expectations that the Fed may cut interest rates this year if the CPI report turns out to be soft. US 10-year treasury bond yields fell to 4.40%, and demand at the auction of 10-year US debt was strong, with the highest bid coverage rate since February 2022.
  • Today, traders are preparing for the US CPI reading at 1:30 PM BST and the Fed decision and Powell conference (7 PM BST and 7:30 PM BST)
  • The Asian session was dictated by sellers. The Hang Seng lost nearly 1.3% today after CPI inflation readings from China. Japan's Nikkei and Topix benchmarks also performed poorly, with a 0.6% and nearly 0.8% correction, respectively
  • In May, CPI inflation from China, on an annual basis, rose 0.3% against 0.4% forecast and 0.3% previous reading, for April. Month-on-month, CPI fell -0.1%, compared to a 0.1% increase in April relative to March.
  • On a year-on-year basis, China's PPI producer price inflation fell -1.4% in May, compared to an expected decline of -1.5% and -2.5% previously.
  • The data did not please investors, pointing to the ever-present 'deflationary' problem in the country, signalling weaker consumer demand; the data was disappointing especially when considering that the economic climate in May last year was weak
  • After yesterday's dynamic rise from $606 to over $630 per bushel, Chicago wheat futures are trading a gentle pullback to $625 per bushel, ahead of today's WASDE supply and demand estimates report
  • Platinum contracts gain nearly 1.5%, and silver is trading less than 0.5% higher. Gold, however, is down a modest 0.15% and is still trading near $2,300 per ounce
  • Bitcoin managed to make up a small portion of yesterday's losses and now costs $67,700 while Ethereum is back above $3500
  • The dollar index is trading up slightly today, while the EURUSD pair is losing slightly. Brent Crude oil is trading above $82 per barrel and is gaining more than 0.3%

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.