Morning Wrap (06.05.2024)

Indexes from Asia and the Pacific are experiencing a mixed session. The Australian S&P/ASX200 is gaining the most (+0.35%). However, indexes from China are losing (-0.05 to -0.35%), along with the Korean KOSPI (-0.25%). The Japanese Nikkei 225 index is down by 0.10%.

Futures contracts on European indexes indicate a slight uptick in the opening of the cash session. DAX index futures are up by 0.08%. The UK market will remain closed due to a holiday.

In the forex market, movements are fairly moderate in the first part of the day. One of the stronger currencies is the Australian dollar (AUD). On the other hand, among the weakest currencies are JPY and TRY. The USDJPY pair is up by 0.70% to 153.870.

Philip Lane, Chief Economist of the European Central Bank, stated that recent data from the eurozone reassured him that inflation is returning to the 2% target, increasing the likelihood of the first interest rate cut in June. Pressure in the services sector decreased for the first time since November. According to Lane, this was an "important first step in the next phase of inflation easing."

The Chinese Caixin/S&P Global PMI for services fell to 52.5 in April from 52.7 in March, remaining in the expansionary territory for 16 consecutive months. The growth in service sector activity in China slowed somewhat due to rising costs. However, the growth in new orders accelerated, and overall business sentiment improved, increasing hopes for a sustainable economic recovery.

Three Israeli soldiers were killed in a rocket attack claimed by the armed wing of Hamas. The attack took place in the vicinity of the city of Rafah in the southern Gaza Strip. The attack was in retaliation for Israeli shelling on Sunday, which resulted in the deaths of at least 19 people.

The Organization for Economic Cooperation and Development (OECD) stated in a report published on Monday that New Zealand's monetary policy must remain restrictive until inflation reaches the central bank's target range, and urged the government to limit spending.

In the cryptocurrency market, we continue to see further rebound. Bitcoin has returned above the $60k level and is up by 0.30% to $64,300 USD today. Ethereum is up by 0.50% to $3,150 USD.