Morning Wrap (14.06.2023)

• Indices from Asia-Pacific traded mixed today. Nikkei gained 0.1% while Kospi traded 0.5% lower. Indices from China also traded lower by 0.4%. Hong Kong shares saw a slight decline, leading to discussions about the necessary stimulus to revive the economy.

• Japan's Nikkei index reached a three-decade high at 33464 points, while Australia's benchmark index declined 0.9%.

• China's central bank is expected to lower its key policy rate this week and implement other measures to ease monetary conditions in the coming months.

• The US500 ended up with a fourth consecutive gain, approaching the 4,400 level, which it hasn't reached in over a year.

• Foreign investors interpreted a slowdown in US inflation as evidence that the Federal Reserve would maintain interest rates in the 5%-5.25% range, with a small chance of an increase in July.

• South Korea's unemployment rate was recorded at 2.5%, lower than the forecasted 2.7% and the previous rate of 2.6%.

• Short-term Treasury yields rose to their highest level since March as expectations of rate cuts by the Fed decreased.

• Oil prices maintained their advance, supported by China's stimulus measures and a US plan to replenish reserves.

• A federal judge ordered the Securities and Exchange Commission and Binance lawyers to continue negotiations regarding limits on the company, with a report due on Thursday.

• Binance and the SEC are close to reaching a deal to avoid a full asset freeze.

• Precious metals traded up - silver and platinum increase 0.7%, palladium up 1.0% and gold 0.15%

Nikkei 225 (JAP225) reached new peak at 33630 points, H4 interval, source: xStation 5