Global Market Summary highlights cautious sentiment across regions as month-end flows and inflation data shape investor behavior. In the U.S., GDP growth missed expectations, reviving speculation about earlier Fed rate cuts. Meanwhile, Eurozone inflation came in hotter than forecast, putting pressure on the ECB’s upcoming decisions. Adding to global volatility, Japanβs yen weakened sharply, prompting fresh verbal intervention. On the other hand, Turkish markets rallied following the central bankβs latest decision, while political uncertainty weighed on South Africa. This global market summary reflects rising divergence across economies and asset classes.
Markets were mostly cautious as month-end flows and key inflation data weighed on sentiment. U.S. GDP growth came in below expectations, reviving bets for earlier Fed cuts. Eurozone inflation surprised to the upside, while Japanβs yen continued to weaken sharply, prompting verbal intervention. In EM, Turkish assets rallied post-CBRT meeting, while South African markets priced in post-election coalition risks.
π Global Market Summary: U.S. Data Recap
πΉ Key Developments:
- Q1 GDP (Second Estimate): Revised down to 1.3% from 1.6% (vs. 1.6% expected), driven by softer consumer spending.
- Jobless Claims: Slightly up to 219K (vs. 218K prior), but still within stable trend.
- Fed Speak: Atlanta Fedβs Bostic reiterated βno rushβ on cuts; markets now price 40% probability of a September cut.
πΉ Markets:
- S&P 500: +0.22%
- Nasdaq 100: +0.51%
- US 10Y Yield: β 7bps to 4.54%
- DXY: β to 104.72
πͺπΊ Eurozone Market Summary: Inflation Surprises
πΉ Key Developments:
- German CPI (May, preliminary): 2.4% YoY, above 2.2% expected β Services inflation remained sticky.
- ECB officials noted they are βready for June cut,β but flagged risks of second-half persistence in core inflation.
πΉ Markets:
- EuroStoxx 50: -0.24%
- German 10Y Bund: β 2bps to 2.67%
- EUR/USD: +0.32% to 1.0844
π¬π§ United Kingdom
πΉ Developments:
- No major data. GBP strength continued amid broad USD softness and pre-BoE policy re-pricing.
- Political focus remains on upcoming general elections (July 4); Labour maintains strong lead.
πΉ Markets:
- FTSE 100: +0.59%
- GBP/USD: +0.36% to 1.2735
- UK 10Y Gilt: β 4bps to 4.18%
π―π΅ Japan
πΉ Developments:
- USD/JPY hit fresh 34-year high at 157.70, despite Tokyo CPI showing deceleration (May core CPI at 1.9% vs 2.0% prior).
- Officials ramped up verbal warnings on FX volatility. BoJ reportedly monitoring for “disorderly moves.”
πΉ Markets:
- Nikkei 225: -1.30% (profit-taking + stronger JPY risk)
- JPY: Weakening again, USD/JPY at 157.70
- JGB 10Y: Unchanged at 1.05%
π¨π³ China
πΉ Developments:
- No major macro releases. PBoC conducted net CNY100B liquidity injection.
- Markets eye PMI releases over the weekend.
πΉ Markets:
- Shanghai Composite: +0.13%
- Hang Seng: -1.14%
- USD/CNH: β to 7.2580
π EM Market Summary: Turkey Rallies, South Africa Under Pressure
πΉπ· Turkey
- CBRT held policy rate at 50%; emphasized tight stance βfor longer.β
- TRY rallied as inflation expectations adjusted downward.
- USD/TRY: β to 32.18
- BIST-100: +1.6%
- 10Y TRY yield: β 48bps
πΏπ¦ South Africa
- ANC lost majority in national elections (below 50%); coalition uncertainty weighing on assets.
- ZAR: -1.1% to 18.75
- JSE All Share: -2.4%
π’οΈ Commodities
πΉ Crude Oil:
- WTI: +1.5% to $78.56
- Market optimistic ahead of OPEC+ meeting this weekend (expectation of extension of supply cuts).
πΉ Gold:
- +0.9% to $2,364/oz amid falling yields and dovish Fed bets.
πΉ Natural Gas (US):
- -3.1% to $2.63, following EIA inventory build.
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