General Market Analysis 17/06/2024

US Markets Mixed into the Weekend – Nasdaq Hits 5th Straight Record

US markets had a mixed day on Friday after a bit of a roller coaster week and traders are expecting a more muted start to the week today. The Nasdaq did manage to notch up a fifth consecutive record high as it ground up 0.12%, the S&P fell just 0.04% and the Dow dropped 0.15%. US treasury yields remained on the back foot, the 2-year rising just 0.4 basis points to 4.692% with the 10-year dropping 2.3 basis points to 4.217%. The dollar moved higher again adding 0.3% on the index, whilst the Euro remained under pressure. Oil prices remained stable with Brent dropping 0.16% to $82.62 and WTI losing 0.22% to $78.45 a barrel. Gold saw one of the bigger moves on the day as it climbed back into recent ranges, gaining 1.3% to close out at $2,332 an ounce.

Central Banks in Focus this Week

Central Banks are once again in focus this week and traders are expecting plenty of volatility around the decisions despite the fact that many are expected to sit on their hands at meetings in the coming days. The People’s Bank of China, Bank of England, Reserve Bank of Australia and the Swiss National Bank are all due to update the market on rates this week coming hard and fast on the back of the Fed and the Bank of Japan last week. It would be a surprise if we see movement from any of the above, the SNB is probably an outside chance of a cut, but the recent GDP print pushed back those expectations significantly. Despite the anticipated lack of movement in base rates, traders are expecting plenty of volatility around the meetings and FX traders in particular will be looking for longer term trades on the back of fresh perceived interest rate differentials as we move forward.

Another Quiet Monday to Start the Week.

It was a bit of a lack luster day on Wall Street on Friday and therefore Asian markets are expecting to kick off the trading week in a somewhat subdued manner this morning. There is a raft of Chinese data set to be released midway through the session with Industrial Production and Retail Sales numbers potential market movers; a 6.2% increase is expected for the former with a 3% increase expected from the latter. There is little on the calendar in the European session, however, expect French politics to continue to weigh on markets today. The US session is relatively quiet, although the Empire State Manufacturing Index data release could see some reaction from the market early in the trading day.

The post General Market Analysis 17/06/2024 first appeared on IC Markets | Official Blog.