📆 Wednesday, June 26
► European stocks opened higher as investor sentiment was buoyed by hints of further rate cuts from the European Central Bank. The Stoxx Europe 600 index rose 0.3%, led by the tech sector, following a rebound in Nvidia shares. Deutsche Post saw a 3% gain after FedEx's strong profit forecast. Investors' expectations that the ECB will ease its monetary policy twice this year are reasonable, according to Governing Council member Olli Rehn, but officials should not dampen economic activity too much. Germany’s consumer confidence dropped to -21.80 points for July, indicating ongoing economic concerns despite the positive market movement.
► US equity futures edged higher extending yesterday's gains, suggesting continued momentum in Wall Street’s tech-driven rally, particularly after Nvidia's 7% rebound on Tuesday. FedEx is also trading 13% higher in pre-market trading due to strong earnings and profit forecasts. The 10-year Treasury yield remained steady at 4.26%, and the USD held its ground. Investors are now looking ahead to the PCE price index release on Friday for further insights into the Federal Reserve's rate cut trajectory.
► Asian markets presented a mixed picture. Japanese and Hong Kong indices rose (bot tech heavy), while Australian stocks declined. Japan’s equities continues to benefit from a weak JPY, which remains near the critical level of 160 per USD, raising concerns of potential government intervention. China's 10-year bond yield fell to a two-decade low as investors sought safety in fixed-income securities amid a slowing economy. Australia's inflation rate surged to 4.0% in May, the highest in six months, prompting fears of delayed interest rate cuts and causing the S&P/ASX 200 to drop by 0.62%. Meanwhile, geopolitical tensions heightened as South Korea reported a failed ballistic missile launch by North Korea.
Subscribe to see more
