Before market opening (23.06.2023)

  • US indices closed yesterday’s trading session mixed: the S&P 500 rose 0.37%, the Nasdaq rose 0.95%, the Dow Jones was flat and the Russell 2000 fell 0.80%.
  • Fed Chairman Powell repeatedly said in testimony before the US Senate committee that two more rate hikes this year seemed appropriate and that his own forecast matched the FOMC’s.
  • Powell also said the Fed does not expect a rate cut anytime soon.
  • Indices in the Asia-Pacific region showed declines today in response to restrictive actions by European central banks yesterday. The Nikkei fell 1.9%, the S&P/ASX 200 fell 1.4%, the Kospi fell 0.8% and the Nifty 50 fell 0.3%.
  • DAX futures point to a lower opening in the European session today.
  • US Treasury Secretary Yellen said the likelihood of a recession had receded, but it remains a risk as the Fed continues to tighten policy.
  • The Fed’s Barkin said the US central bank was still far from its 2% inflation target. However, Barkin declined to predict what the Fed would do at its July meeting.
  • Australia’s manufacturing PMI rose from 48.4 to 48.6 in June, while the services index fell from 52.1 to 50.7.
  • Japan’s manufacturing PMI rose from 50.6 to 49.8 in June (expected: 50.2).
  • Japan’s CPI core inflation (excluding food) increased from 3.4 to 3.2% y/y in May (expected: 3.1% y/y). The global indicator fell from 3.5 to 3.2% year-on-year.
  • However, Japan’s so-called core measure of inflation, which excludes food and energy and is closely watched by the Bank of Japan, fell from 4.1 to 4.3 percent year-on-year (expected: 4.4% year-on-year) . This is the highest level in over 40 years!
  • Deutsche Bank expects the Bank of England to raise interest rates by 25 basis points at meetings in August, September and November to a maximum rate of 5.75%.
  • Major cryptocurrencies see little change today: Bitcoin holds steady, while Ripple and Ethereum each gain
  • around 0.2%.
  • Energy commodities developed in a mixed way. Oil is down around 1%, while natural gas is up around 3% after a contract postponement.
  • Precious metals are up slightly: gold is up 0.1%, while silver and palladium are up 0.4%. Platinum has fallen 0.5 per cent.
  • The US dollar and the euro are the top currencies, while the Australian dollar and the New Zealand dollar are the biggest laggards.

AUDUSD is still down, crossing below the 200 session moving average today. The pair is trading at its lowest since early June following the drop in the Australian Services PMI. Source: xStation5.

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