Global Markets:
- Asian Stock Markets : Nikkei down 0.99%, Shanghai Composite down 0.43%, Hang Seng down 0.03% ASX down 0.29%
- Commodities : Gold at $2343.5 (-0.43%), Silver at $31.08 (0.871%), Brent Oil at $82.87 (0.01%), WTI Oil at $78.72 (0.28%)
- Rates : US 10-year yield at 4.485, UK 10-year yield at 4.29, Germany 10-year yield at 2.54
News & Data:
- (JPY) SPPI y/y 2.8%% vs 2.3% expected
Markets Update:
The Asia-Pacific markets showed mixed performance as investors analyzed hints of potential rate cuts from European Central Bank officials. Australia’s S&P/ASX 200 dipped 0.24% due to weaker-than-expected retail sales growth in April, while Japan’s Nikkei 225 declined by 0.99%. South Korea’s Kospi edged slightly higher, and Hong Kong’s Hang Seng index down by 0.04%.
ECB governing council member Olli Rehn signaled the possibility of rate cuts, citing a sustained decrease in euro zone inflation. This aligns with remarks from ECB Chief Economist Philip Lane, indicating potential monetary policy adjustments in June. Market indicators strongly suggest a quarter-percentage-point cut to the ECB’s main rate at the upcoming June 6 meeting.
Euro zone inflation has remained below 3% for seven consecutive months, despite holding steady at 2.4% in April. May’s inflation data is due Friday. In the U.S., markets resumed trading after Memorial Day, with futures for all three major indexes showing gains. Dow Jones Industrial Average futures rose by 0.09%, S&P 500 futures by 0.13%, and Nasdaq futures by 0.21%.
Upcoming Events:
- 12:30 PM GMT – CAD IPPI m/m
- 12:30 PM GMT – CAD RMPI m/m
