Morning Wrap (06.07.2023)

Indexes from the Asia-Pacific region traded lower during today’s session. Nikkei declined by 1.0%, S&P/ASX 200 fell 0.9% and Kospi is down by 0.7%. Chinese indexes droppe more than 2%.

Asian stocks, including Japan, Australia, South Korea, and Hong Kong, declined after FOMC minute publication and hawkish signals from the Federal Reserve

European futures contracts for indexes also indicate a lower opening of the cash session on the Old Continent with German DAX trading 0.4% lower.

S&P 500 and Nasdaq 100 futures decreased as investors awaited US jobs data to gain insight into interest rate trends

Australian and New Zealand 10-year government bond yields reached their highest levels in 2023, following gains in the US. 

Australian exports rose in May, exceeding expectations and resulting in a trade balance of $11.8 billion

A poll conducted by Reuters indicates that 23 out of 25 economists forecast the RBA to raise the cash rate to 4.35% in August, with two predicting a pause

The minutes of the Federal Reserve's monetary policy meeting in June revealed that officials plan to continue increasing interest rates after taking a break in the previous month

Fed's Williams fully supported the decision to hold rates steady in June and expects it to take a year or two to experience the full impact of monetary policy. He acknowledged progress on inflation but noted persisting high price pressures

The US Commerce Department firmly opposes China's export controls on Gallium and Germanium and intends to collaborate with allies and partners to address these controls

Oil is trading 0.1% lower after yesterday’s gains

Precious metals CFDs trade slightly higher. Gold and silver trade 0.2% higher while platinum gains 0.1% and palladium drops 0.3%