2024 0603 Global Stock Exchange Information
USA
U.S. stocks were mixed last Friday (31st), with the S&P briefly falling below 5,200 points during the session, but 20 minutes before the close, the stock surged a thrilling 0.8%. The Dow Jones soared past 570 points, marking its best trading day of the year, while the Nasdaq closed little changed. The three major indexes closed in the black for the week, with the S&P and Nasdaq falling 0.51% and 1.1% respectively, ending five consecutive weeks of gains. Fortunately, U.S. stocks still ushered in a victory in May, with the S&P rising 4.8% month-on-month. The Dow Jones gained 2.3% on the month, while the Nasdaq gained 6.88% on the month.
In terms of data, the U.S. personal consumption expenditures (PCE) price index in April increased by 2.7% year-on-year and 0.3% month-on-month, in line with economists’ expectations. The Federal Reserve's preferred inflation indicator, the U.S. core PCE, increased by 2.8% year-on-year and 0.2% month-on-month in April, in line with market expectations.
Foreign exchange market
After the release of the key inflation report, market expectations for future interest rate cuts have increased. The U.S. dollar weakened last Friday (31st), and Bitcoin once fell to $67,000. In late New York trading, the ICE U.S. Dollar Index (DXY), which tracks the U.S. dollar against six major currencies, fell 0.15% to 104.61, marking the first time since 2024 that the monthly line closed in the black.
USD/JPY rose 0.27% to trade at 157.24 yen per dollar. Japanese Finance Minister Shunichi Suzuki said that it is important for the exchange rate to stabilize and fluctuate and reflect fundamentals. He is currently paying close attention to foreign exchange trends and is prepared to take all possible foreign exchange measures. The move prevented the yen from testing new lows but is unlikely to reverse a long-term downward trend.
energy market
∎ International oil prices closed lower last Friday (31st), causing May to record its largest monthly decline so far this year. This was because traders were worried about gasoline demand and were waiting for the Organization of the Petroleum Exporting Countries and its allies (known as OPEC+) to cut production over the weekend. Make a decision. Ahead of Sunday's meeting, news reports said Saudi Arabia had summoned some OPEC+ ministers to Riyadh. The Financial Times reported that an OPEC+ spokesman said Sunday's meeting would still be held online, raising the possibility that some ministers would attend face-to-face with Saudi Arabian Energy Minister Abdulaziz bin Salman.
West Texas Intermediate (WTI) crude futures for July delivery fell 92 cents, or 1.2%, to settle at $76.99 a barrel. Brent crude futures for July delivery fell 24 cents or 0.3%, closing at $81.62 per barrel.
precious metals market
∎ Gold prices fell last Friday (31st) as investors digested a U.S. inflation report that was basically in line with expectations, although expectations that the Federal Reserve (Fed) may still cut interest rates this year sent gold higher for the fourth consecutive month. While gold prices fell on Friday, prices were up 1.8% for the month. On the 20th of last month, gold prices hit an all-time high of $2,449.89. Although gold is usually regarded as a hedge against inflation, due to its non-interest-bearing nature, high interest rates will increase the opportunity cost of holding gold and weaken its investment appeal.
Gold futures for August delivery fell 0.9% to settle at $2,346.4 an ounce.
agricultural products market
∎ Chicago Board of Trade (CBOT) soybean futures fell for the fourth consecutive day on Friday, analysts said, affected by South American supply and a large number of technical trading, while market participants adjusted their positions at the end of the month. CBOT July soybean contract (SN24) closed down 4-3/4 cents, settling at $12.05 per bushel.
∎ Corn futures fell for a fourth straight session, as analysts said weakness in the wheat market put pressure on them and corn traders adjusted their positions at the end of the month. The July corn contract (CN24) settled down 2.5-1/4 cents to US$4.46-1/4 per bushel.
City Index and Forex.com analyst Fawad Razaqzada said, "Tech stocks appear to be overdone now, indicating that a correction may be coming. After several months of sharp gains and no new bullish catalysts, a correction would not be surprising. 」
