21st June 2022 Tuesday: Markets higher as investor bargain-hunt

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Global Markets:

  • Asian Stock Markets : Nikkei up 2.48%, Shanghai Composite up 0.18%, Hang Seng up 1.52%, ASX up 1.40%
  • Commodities : Gold at $1840.35 (-0.01%), Silver at $21.63 (+0.18%), Brent Oil at $115.48 (+1.18%), WTI Oil at $110.39 (+2.22%)
  • Rates : US 10-year yield at 3.283, UK 10-year yield at 2.609, Germany 10-year yield at 1.745

News & Data:

  • (NZD) Westpac Consumer Sentiment 78.7 vs 92.1 previous
  • (EUR) German PPI m/m 1.60% vs 1.50% expected
  • US ban on imports from China’s Xinjiang to take effect on Tuesday
  • Lowe: Expect next month will be discussing 25bps or 50bps

Markets Update:

Asian stock markets are trading mostly higher on Tuesday, following the positive cues from European markets overnight, with traders picking up stocks at a bargain after the recent sell-off in global markets, the worst since 2020. However, traders remain worried about a recession amid bets of bigger interest-rate hikes from major central banks. Traders also await a congressional appearance by U.S. Federal Reserve Chair Jay Powell this week that could highlight the U.S. central bank’s resolve to guide inflation back to the Fed’s 2 percent target.

Mainland Chinese stocks were muted, with the Shanghai Composite marginally up by 0.2% while the Shenzhen Component sat above the flatline.  Hong Kong’s Hang Seng index climbed 1.5%, with tech stocks Tencent and Alibaba posting gains of 2.5% and 0.8% respectively.  The Australian stock market is sharply higher on Tuesday, snapping the seven-session losing streak, boosted largely by materials, energy and financial stocks as traders picked up stocks at a bargain after the recent sell-off to 19-month lows.

Crude oil futures traded mixed on Monday after falling sharply in the previous session on inflation worries and global growth concerns. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 104.298.

Upcoming Events:

  • 12:30 PM GMT – (CAD) Core Retail Sales m/m
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  • 02:00 PM GMT – (USD) Existing Home Sales