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 On Wednesday, the US stock indices ended trading in a mixed direction. At the end of the day, the Dow Jones Index (US30) rose by 0.04%, and the S&P 500 Index (US500) added 0.16%. The Nasdaq Technology Index (US100) closed positive 0.49%. Stock gains on Wednesday were capped by a rise in bond yields after hawkish comments from Fed spokesman Bowman lifted 10-year bond yields to a weekly high and dampened expectations of a Fed rate cut this year.FedEx (FDX) is up more than 15% after reporting better-than-expected Q4 adjusted EPS and estimating 2025 adjusted EPS above consensus. Additionally, Amazon (AMZN) is up more than 3% after announcing plans to launch an online store for low-priced clothing and home goods. Apple (AAPL) shares are up more than 1% after Rosenblatt Securities upgraded the stock to “buy” from “neutral” with a $260 price target. Moderna (MRNA) is down more than 10% and topped the list of losers in the S&P 500 and Nasdaq 100 after new data showed that the efficacy of its RSV vaccine fell sharply in its second year and was lower than competing vaccines.Markets are awaiting Friday’s release of PCE deflator data for May, the Fed’s preferred inflation gauge, to see if price pressures are easing, which could pave the way for the Fed to cut interest rates. The consensus is that the May core PCE deflator fell to 2.6% y/y from 2.8% y/y in April. If the actual data comes in line with the estimate, it will have a negative impact on the US dollar but will be positive for rising stock indices.Equity markets in Europe were mostly down on Wednesday. Germany’s DAX (DE40) fell by 0.12%, France’s CAC 40 (FR40) closed down 0.69%, Spain’s IBEX 35 (ES35) lost 0.80%, and the UK’s FTSE 100 (UK100) closed negative 0.27%. European equity markets opened lower on Thursday as investors became more cautious and reassessed the outlook for the global economy, inflation, and interest rates. In Europe today, traders will analyze consumer and business confidence data in Italy, retail sales data in Spain, and the Bank of England’s latest financial stability report. On Thursday, the EU leaders’ summit will start in Belgium.WTI crude prices fell to around $80.5 a barrel on Thursday, retreating further from a near two-month high. An unexpected increase in US oil inventories added to concerns about weakening demand in the world’s top oil consumer. EIA data showed that the US crude inventories rose by 3.591 million barrels last week, defying market expectations of a 3 million barrel decline.Silver prices (XAG/USD) held below $29 an ounce, near a six-week low, and were pressured by a strong dollar and Treasury bond yields after hawkish remarks from a Federal Reserve official. Meanwhile, investors continued to assess the outlook for silver demand in China, a major consumer, as industrial use of the metal is likely to suffer due to overcapacity in solar panel production.Asian markets were predominantly up yesterday. Japan’s Nikkei 225 (JP225) rose by 1.26%, China’s FTSE China A50 (CHA50) added 0.09%, Hong Kong’s Hang Seng (HK50) gained 0.09%, and Australia’s ASX 200 (AU200) was negative 0.71%.Japan’s 10-year government bond yield rose to 1.1%, the highest in almost a month, while the 2-year bond yield hit a two-week high near 0.35% amid strong retail sales data and a sharply weaker yen, raising bets that the Bank of Japan (BoJ) may raise interest rates at its July meeting. The data showed that retail sales in Japan rose 3% in May from a year earlier, accelerating from an upwardly revised 2.4% increase in April and well above market expectations for a 2% rise. Meanwhile, the yen fell to 160 per dollar, hitting its lowest level since 1986.Australia’s 10-year government bond yield climbed above 4.4% to a more than three-week high as high inflation readings heightened fears that the Reserve Bank of Australia (RBA) may raise interest rates again as early as its next meeting in August.

  • S&P 500 (US500) 5,477.90 +8.60 (+0.16%)
  • Dow Jones (US30) 39,127.80 +15.64 (+0.040%)
  • DAX (DE40) 18,155.24 ?22.38 (?0.12%)
  • FTSE 100 (UK100) 8,225.33 ?22.46 (?0.27%)
  • USD Index 106.05 +0.44 (+0.41%)
  • Important events today:

  • Japan Retail Sales (m/m) at 02:50 (GMT+3);
  • UK BoE Financial Stability Report at 12:00 (GMT+3);
  • UK BoE Gov Bailey Speaks at 12:30 (GMT+3);
  • US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
  • US Durable Goods Orders (m/m) at 15:30 (GMT+3);
  • US GDP (q/q) at 15:30 (GMT+3);
  • US Pending Home Sales (m/m) at 17:00 (GMT+3);
  • US Natural Gas Storage (w/w) at 17:30 (GMT+3).
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