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    US Futures and Asian Markets Decline Weakened by Tech Sector – May 11

    Commodities’ Prolonged Rise Intensifies Fears of Inflation

    US equity futures and Asian markets followed a decline on Wall Street and dropped on Tuesday. Technology stocks had tumbled in the US during the previous trading session, as rising commodities had intensified fears of inflation. 

    MSCI Inc.’s Asia-Pacific share index dipped to the lowest mark since March, dragged down by technology stocks. Japan and Hong Kong sold off most drastically. Chinese stocks, in contrast, managed to recover from earlier losses. Nasdaq extended yesterday’s decline and gave up 1.4% on inflation concerns.  After the gauge slid from an all-time high, S&P 500 contracts drifted lower. The US dollar and Treasuries stabilized on Tuesday. 

    Oil prices slid, still affected by the shutdown of the largest US pipeline after the cyber attack. Investors eyed the progress of its reopening, reassured that it would be back online by the weekend. The main concern for now remains the prolonged rise of commodities and their influence on inflation. Debate continues over whether the expected jump in inflation will force the Federal Reserve to tighten monetary policy sooner than Fed officials promise. 

    These are the main moves in the markets on Tuesday:

    Stocks

    S&P 500 futures retreated 0.4% during the morning session in London. The S&P 500 Index gave up 1%. Nasdaq 100 contracts were 0.7% lower. The Nasdaq Index shed 2.6%. The Topix in Japan tumbled 2.4%, while the S&P/ASX 200 in Australia lost 1%. The Kospi Index in South Korea dipped 1.2%. The Hang Seng in Hong Kong slipped 1.7%. Euro Stoxx 50 futures decreased 1.2%. Among these falling markets only the Chinese stocks managed to end the trading session in the green. The Shanghai Composite Index added 0.5%. 

    Currencies

    The US Dollar Index remained unchanged on Tuesday. The Japanese yen traded at 108.86 against the greenback. The offshore yuan was little changed trading at 6.4242 per US dollar. The euro was at $1.2144. AUD/USD changed hands at 0,7843. The USD/CHF pair traded at 0.9022. 

    Commodities

    West Texas Intermediate crude retreated 0.4% and traded at $64.68 a barrel. Brent crude shed 1.1% to trade at $67.55 a barrel. Gold was unchanged, trading at $1,837,42 an ounce. Silver advanced 0.1% to trade at $27.52 an ounce. Platinum sank 0.1% to $1,248.99 an ounce. Copper continued climbing and jumped additional 1.1% on Tuesday to trade at $476.80. 

    Bonds

    The yield on 10-year Treasuries held at 1.60%. Australia’s 10-year bond yield increased one basis point to 1.72%.

    Looking forward

    • Several Federal Reserve speakers are presenting this week, including Governor Lael Brainard who speaks on Tuesday.
    • OPEC monthly Oil Market Report is published with global demand forecasts and production estimates on Tuesday.
    • U.S. CPI report released on Wednesday is forecast to show that prices continued to increase in April.
    • The Bank of England Governor Andrew Bailey speaks on Wednesday.

    Have a profitable trading day!

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