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    Global Stocks, Futures Retreat, Dollar Rises – May 12

    Commodities Continue Climbing, Igniting Inflation Fears

    Global markets moved into the negative territory on Wednesday. Investors waited for the release of new economic data, worried that new figures will reinforce the risk of higher price pressures that will hinder the global economic revival. 

    European and American equity futures dropped, and so did Asian markets. Dragged down by technology stocks and coronavirus restrictions, Taiwan’s benchmark dipped a whopping 8.6%. Margin calls also contributed to its downfall. An Asia-Pacific gauge was at the lowest point since the beginning of the year. Nasdaq 100 closed flat. The S&P 500 continued its two-day losing streak. 

    Treasuries were steady, while the US dollar advanced. Oil traded above $65.00. The attacked pipeline remains closed, which causes fuel shortages in some parts of the country. Australian 10-year bond yield climbed after the government released information about a big-spending budget that would help speed up the country’s economic recovery. 

    Copper approached a new record price, while the Bloomberg Commodity Spot Index came close to the highest level in almost ten years. Palm oil futures in Kuala Lumpur soared to the highest intraday level in its history. 

    These are the major moves in markets that traders should watch on Wednesday:

    Stocks

    S&P 500 futures declined 0.6% during the European trading session. The S&P 500 Index retreated -.9%. Nasdaq 100 contracts gave up 0.8%. Japan’s Topix index slumped by 1.5%. The S&P/ASX 200 Index moved 0.8% lower. The Kospi in South Korea dipped 1.6%. Hong Kong’s Hang Seng Index edged 0.1% higher. Shanghai Composite in China added 0.3%. Euro Stoxx 50 futures shed 0.5%. 

    Currencies

    The Japanese yen slipped 0.2% to trade at 108.86 per dollar. The offshore yuan gave up 0.2%, trading at 6.4383 per dollar. The euro sank 0.2% to trade at $1.2124. The US Dollar Spot Index gained 0.2%. 

    Commodities

    West Texas Intermediate crude was at $65.35 a barrel. Brent crude lost 0.01% to trade at $68.54 a barrel. Gold sank 0.4% to $1,829.89 an ounce. Silver declined 0.9% to trade at $27.41. Platinum Spot retreated 0.3% to $1,236.35. Copper rose 0.4% to trade at $478.20.

    Bonds

    The yield on 10-year Treasuries was steady around 1.62%, Australia’s 10-year bond yield soared five basis points to 1.78%.

    Looking forward

    These are the event that traders should watch on Wednesday:

    • U.S. CPI report released on Wednesday is forecast to show prices continued to increase in April.
    • The Bank of England Governor Andrew Bailey speaks on Wednesday.

    Have a productive trading day!

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