24th June 2022 Friday: Commodity weakness drives equity markets

IC Markets No Comments

Global Markets:

  • Asian Stock Markets : Nikkei up 1.23%, Shanghai Composite up 0.89%, Hang Seng up 1.89%, ASX up 0.77%
  • Commodities : Gold at $1826.20 (-0.20%), Silver at $20.90 (-0.70%), Brent Oil at $109.34 (-0.65%), WTI Oil at $103.80 (-0.45%)
  • Rates : US 10-year yield at 3.055, UK 10-year yield at 2.277, Germany 10-year yield at 1.367

News & Data:

  • (GBP) Retail Sales m/m -0.50% vs -0.60% expected
  • (USD) Flash Services PMI 51.6 vs 53.9 expected
  • (USD) Flash Manufacturing PMI 52.4 vs 56 expected
  • (USD) Unemployment Claims 229K vs 227K expected
  • (GBP) Flash Services PMI 53.4 vs 53 expected
  • (GBP) Flash Manufacturing PMI 53.4 vs 53.5 expected
  • (EUR) German Flash Services PMI 52.4 vs 54.6 expected
  • (EUR) German Flash Manufacturing PMI 52 vs 54 expected
  • (EUR) French Flash Services PMI 54.4 vs 57.6 expected

Markets Update:

Asian stock markets are trading mostly higher on Friday, following the broadly positive cues overnight from Wall Street, as traders indulged in bargain hunting in the oversold bourses, particularly among the technology shares, even as the possibility of a global recession remains. Traders also digest comments from US Fed Chair Jerome Powell on the second day of his testimony.

The Japanese stock market is modestly higher on Friday, extending the gains in the previous session, with the benchmark Nikkei 225 moving above the 26,300 level, following the broadly positive cues overnight from Wall Street, aided by strength in technology stocks, which mirrored their peers on the tech-heavy Nasdaq. Mainland Chinese markets rose. The Shanghai Composite gained around 1% in the afternoon, and the Shenzhen Component was 1.39% higher.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 104.248. Oil futures slid on Thursday, losing ground for a second straight session on concerns about outlook for energy demand amid rising possibility of a recession.

Upcoming Events:

  • 08:00 AM GMT – (EUR) German ifo Business Climate
  • 11:30 AM GMT – (AUD) RBA Gov Lowe Speaks
  • 11:30 AM GMT – (USD) FOMC Member Bullard Speaks
  • 02:00 PM GMT – (USD) Revised UoM Consumer Sentiment