Asian Stocks Mixed, Oil and Gas Stocks Surge
European stocks were up on Wednesday, whereas US equity futures decreased, reflecting the confusing atmosphere in the markets. Investors continue to be torn between optimism about the global economic recovery and worries about inflation.
The Stoxx Europe 600 Index advanced 0.3%, led by energy shares riding on the wave of climbing commodities prices. Contracts on the Nasdaq 100 and the S&P 500 did not change much on Wednesday. Markets in Hong Kong and China were in the red. Stocks in Japan outperformed. Robust economic data brought Australian equities up.
Oil and gas stocks surged 1.1%, as crude prices continued gaining after OPEC and its allies reaffirmed their intention to bring supply to the markets at a cautious pace in June and July. The prospects that Iranian oil will soon gush to the markets seem unfounded. Food, beverage, and real estate stocks, considered more stable in uncertain times, showed good performance on Wednesday. Technology stocks and miners declined.
The US dollar moved higher. The Turkish lira sank to a record low against the dollar, after the Turkish president spoke of lower interest rates.
These are major moves in the markets that investors should watch on Wednesday:
The Stoxx Europe 600 advanced 0.3% in the morning during the European session. Futures on the S&P 500 were little changed, and so were futures on the Nasdaq 100. Futures on the Dow Jones Industrial Average were little changed, too. The MSCI Asia Pacific Index was little changed, while the MSCI Emerging Markets Index dropped 0.4%.
The Dollar Spot Index jumped 0.1%. The euro was little changed trading at $1.2206. The Japanese sank 0.2% to 109.75 per dollar. The offshore yuan shed 0.1% to 6.3896 per dollar. The British pound was little changed trading at $1.4141. AUD/USD gave up 0.39% to trade at 0.7724. The USD/CAD pair changed hands at 1,2082, up 0.09%. USD/CHF rose 0.48% traded at 0.9016.
Brent crude jumped 0.7% to $71 a barrel. WTI added 1.06% to trade at $68.44 a barrel. Gold lost 0.29% to $1,899.40 per ounce. Silver was 0.74% lower and traded at $27.90 per ounce. Platinum shed 0.73% to $1,187.18. Copper slid 0.41% to $463.45.
The yield on 10-year Treasuries was little changed at 1.60%. Germany’s 10-year yield dipped one basis point to -0.19%. Britain’s 10-year yield retreated one basis point to 0.82%.
These are events that traders should watch this week:
- Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic, and Dallas Fed President Robert Kaplan speak on Wednesday.
- The U.S. employment report for May is out on Friday.
Have a successful trading day!