Thursday 10th June 2021: Markets take a breather as investors await US inflation data

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Global Markets:

  • Asian Stock Markets : Nikkei up 0.34%, Shanghai Composite up 0.54%, Hang Seng down 0.07%, ASX up 0.44%
  • Commodities : Gold at $1881.65 (-0.73%), Silver at $27.74 (-0.95%), Brent Oil at $71.95 (-0.37%), WTI Oil at $69.70 (-0.37%)
  • Rates : US 10-year yield at 1.492, UK 10-year yield at 0.727, Germany 10-year yield at -0.245

News & Data:

  • (USD) 10-y Bond Auction 1.50|2.6 vs 1.68|2.5 previous
  • (USD) Crude Oil Inventories -5.2M vs -3.3M expected
  • (CAD) Overnight Rate 0.25% vs 0.25% expected
  • Australian prime minister slams China over trade bullying
  • PBOC’s Yi views consumer inflation in China below 2%

Markets Update:

Asian stock markets are trading mostly higher on Thursday, ignoring the negative cues overnight from Wall Street, as traders continued to be optimistic about strong economic rebound from the pandemic following increased Covid-19 vaccination rates. The mood in the markets are also subdued due to concerns over rising inflation as traders await the release of key U.S. inflation data, due later in the day, for indications on the outlook for the world’s biggest economy.

The Japanese stock market is modestly higher on Thursday, snapping the two straight sessions of losses, even as traders remain concerned after the Japanese government extended the COVID-19 state of emergency to contain the spread of the virus. The Shenzhen component in mainland China jumped 1.3% by the afternoon, while the Shanghai composite gained 0.8%. Hong Kong’s Hang Seng index rose 0.3%.The Australian stock market is modestly higher, recouping the losses of the previous session

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 90.186 after recently bouncing from below the 90 level. The benchmark 10-year Treasury yield fell below 1.5% for the first time in a month. Oil prices fell as inventory data in the United States, the world’s top oil consumer, showed a surge in gasoline stocks that indicates weaker-than-expected fuel demand at the start of summer, the country’s peak season for motoring.

Upcoming Events:

  • 11:45 AM GMT – (EUR) Monetary Policy Statement
  • 11:45 AM GMT – (EUR) Main Refinancing Rate
  • 12:30 PM GMT – (EUR) ECB Press Conference
  • 12:30 PM GMT – (USD) CPI m/m
  • 12:30 PM GMT – (USD) Core CPI m/m
  • 12:30 PM GMT – (USD) Unemployment Claims
  • 05:01 PM GMT – (USD) 30-y Bond Auction