20240605 Global Stock Exchange Information

USA

∎ U.S. JOLTs job vacancies fell to a nearly three-year low, but it also boosted hopes for the Federal Reserve to cut interest rates this year. The market is also waiting for the "final word" on the upcoming non-farm employment data. The main U.S. stock index closed in the red on Tuesday (4th). The Dow Jones closed 140 points lower, the S&P and Nasdaq edged up more than 0.1%, and the Fed bucked the trend and weakened 0.7%. Huida rose more than 1% and continued to set a new high.

∎ The Federal Reserve will hold a meeting next week. The U.S. Department of Labor (DOL) released the Job Vacancy and Labor Turnover Survey (JOLTS) on Tuesday, showing that the number of job vacancies plummeted to 8.059 million in April, the lowest level since February 2021. Not only was it lower than the 8.37 million expected by economists, it was also far lower than the revised 8.355 million in March.

Foreign exchange market

∎ As investors took profits ahead of the key non-farm payrolls report, the U.S. dollar index rebounded from nearly two-month lows on Tuesday (4th), but after data showed that JOLTS job vacancies in April fell to a new low in more than three years , giving up most of the gains. In late New York trading, the ICE U.S. Dollar Index (DXY), which tracks the U.S. dollar against six major currencies, edged up 0.08% to 104.13, but fell below 104 during the session, hitting its lowest level since April 9.

∎ The euro stopped its third consecutive red streak, falling 0.2% to $1.0879. The yen rose for the second consecutive day, rising more than 0.8% to 154.84 yen per dollar, its highest level since mid-April. After hitting its highest level since mid-March, the pound subsequently reversed its gains and fell, falling 0.3% to $1.2768 at the time of writing.

energy market

∎ International oil prices fell for a fifth consecutive day on Tuesday (4th), hitting a second high, as the Organization of the Petroleum Exporting Countries and its allies (known as OPEC+) decided over the weekend to begin withdrawing some production cuts later this year, triggering market concerns about the prospect of oversupply. Analysts pointed out that the previous day's weak data raised concerns about the U.S. economic outlook and also intensified concerns about the demand outlook.

∎ West Texas Intermediate (WTI) crude futures for July delivery fell 97 cents, or 1.3%, to settle at $73.25 a barrel. Brent crude futures for August delivery fell 84 cents, or 1.1%, to settle at $77.52 a barrel. Brent and WTI crude oil ended lower for a fifth straight day on Tuesday, also closing at their lowest levels since early February.

precious metals market

∎ Gold prices fell more than 1% on Monday (3rd) as the U.S. dollar stabilized ahead of the U.S. non-farm payrolls report for May. The report could set the tone for the Federal Reserve's interest rate strategy. Gold reversed a rally the previous day on weak U.S. manufacturing data, falling despite weakness in U.S. stocks on Tuesday. Investors now await Friday's U.S. nonfarm payrolls report for more certainty on what actions the Fed may take for the rest of the year. Since gold does not yield interest, interest rate cuts can reduce the opportunity cost of holding gold, thus increasing its investment appeal.

∎ Spot gold fell 0.9% to $2,329.10 an ounce. Gold futures for August delivery fell about 0.9% to settle at $2,347.4 an ounce.

agricultural products market

∎ Chicago Board of Trade (CBOT) soybean futures ended lower on Tuesday, dragged down by the spillover effects of faster soybean planting in the United States and weak corn prices, but support was provided by major exporter Brazil's lower soybean harvest forecast. CBOT July soybean contract (SN24) closed down 5-1/2 cents, settling at $11.79 per bushel.

∎ Corn futures edged lower in choppy trading as traders weighed U.S. planting progress, strong corn ratings and adverse weather in Mexico. The July corn contract (CN24) settled down 1 cent at $4.42-1/2 per bushel.

Raisah Rasid, global market strategist at J.P. Morgan Asset Management, expects: "Labor demand in the U.S. market will slow down slightly. What does this mean for the Fed? I think all the data shows that the Fed will cut interest rates once later this year. Probably in December."