Global Economic Daily - 31/05/2024
Straits Financial Group
Leading Asian Derivatives Brokerage Providing Bespoke Solutions to Global Clients
NEWS AND MARKET COMMENTARY
Global Equities
Global Fixed Income
Currencies
Energy
Metals
Global Politics/News
Relevant Government Reports
领英推荐
?
?Financial
Closing Commentary
?
Quote of the Day: Gratitude is the fairest blossom which springs from the soul. – Henry Ward Beecher
?
Equities: Stocks slid yet again on Thursday as traders look ahead to the release of key U.S. inflation data. The?Dow Jones Industrial Average?slid 330.06 points to 38,111.48. The?S&P 500?lost 31.47 points to close at 5,235.48. The?Nasdaq 100?dipped 198.09 points to 18,538.66, underscoring the weakness in technology names. Thursday’s moves come amid a tough, holiday-shortened trading week. The S&P 500 has slipped around 1.3%, while the Nasdaq Composite has shed 1.1%, putting both on track to snap five-week winning streaks. The Dow has tumbled more than 2%, on pace for its second straight losing week. An uptick in the?10-year Treasury?yield has hurt investor sentiment this week.?Higher yields can be bad news for stock investors, as they reduce the multiples traders are willing to pay for equities and make safer investments, such as Treasury bills and money market funds, more attractive. While the yield slipped?back below?4.6% on Thursday, it remained above the 4.5% level, which is considered troublesome for stocks. Despite the rocky week, the indexes are all on track to end the trading month, which also concludes with Friday’s closing bell, higher. The Nasdaq Composite and S&P 500 have jumped nearly 7% and 4%, respectively, in May. The Dow has risen 0.8% in the month. All three indexes hit record highs in May. Traders are looking toward Friday’s release of the personal consumption expenditures price index report for April, which is the Federal Reserve’s preferred inflation gauge.?Inflation is?expected?to come in at 2.7% for April, according to the Dow Jones estimate, still above the central bank’s 2% target. TECHNICAL OUTLOOK - The Dow and S&P are at the 14, 21 day moving average.
?
Crude Oil: Oil prices fell for the second consecutive session on Thursday, after the U.S. government reported weak fuel demand in the country and a surprise jump in gasoline and distillate fuel stockpiles. U.S. crude stocks fell more than expected last week as refiners ramped up to their highest utilization rates in over nine months, data from the U.S. Energy Information Administration showed. However, there was a surprise jump in gasoline and distillate fuel inventories as demand weakened even as output rose. Analysts had expected the U.S. Memorial Day holiday on May 27, the start of the U.S. summer driving season, would boost fuel demand. Yet EIA's measure of gasoline demand slipped about 2% from the prior week to 9.15 million barrels per day. U.S. gasoline futures fell more than 2% to a 3-month low of $2.40 a gallon, while ultra-low sulfur diesel futures settled at an over 11 month low. Further pressuring oil prices, investors' risk-appetite has been subdued by the prospect of delayed monetary easing in the U.S. and Europe. "Fear trading" is dominating financial markets ahead of Friday's U.S. consumer price index data. Oil investors are also cautious ahead of an OPEC meeting this weekend. The producer group will decide whether to extend, deepen or unwind supply cuts. Soft fuel demand and rising global oil inventories may help convince OPEC producers to?maintain supply cuts?when they meet on June 2, OPEC delegates and analysts say. TECHNICAL OUTLOOK – The Crude is back below the 14, 21 day moving average.
?
Metals: Gold prices are modestly lower and silver prices sharply down in early U.S. trading Thursday. The two precious metals markets are still feeling the aftereffect of comments Tuesday by Minneapolis Fed President Neel Kashkari, who leaned hawkish in his comments on U.S. monetary policy. Traders and investors are also bracing for a busy day for U.S. economic reports. U.S. economic data releases today are highlighted by the second estimate of first-quarter gross domestic product. GDP is seen up 1.2% from the same time last year. The chain-weighted price index is seen up 3.1%, year-on-year. Technically, August gold futures prices hit a three-week low overnight. The bulls have the overall near-term technical advantage but have faded. A bearish double-top reversal pattern has formed on the daily bar chart to suggest a near-term market top is in place. Bulls’ next upside price objective is to produce a close above solid resistance at the contract high of $2,477.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the May low of $2,308.70. July silver futures bulls have the solid overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at the May high of $32.75. The next downside price objective for the bears is closing prices below solid support at $29.00. TECHNICAL OUTLOOK – Gold and silver are above the 14, 21 day moving average.
?
DISCLAIMER: The Information and data contained herein was obtained from sources deemed reliable. The accuracy and completeness are not guaranteed
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
Visit Us At https://www.straitsfinancial.com/
Singapore | United States | Indonesia | China | Dubai
Straits Financial, 9 Temasek Boulevard #28-02 Suntec Tower Two Singapore 038989, Singapore, Singapore, +65 6672 9668