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After yesterday’s mixed session on Wall Street, US and European index futures are trading slightly higher today. The US100, US500 and US30 are up in the 0.2–0.3% range. Germany’s DAX is trading 0.3% higher. Investors are mainly waiting today for ISM data from the US service sector (3 PM BST)

Wednesday News
  • After yesterday’s mixed session on Wall Street, US and European index futures are trading slightly higher today. The US100, US500 and US30 are up in the 0.2–0.3% range. Germany’s DAX is trading 0.3% higher. Investors are mainly waiting today for ISM data from the US service sector (3 PM BST)
  • Japanese benchmarks have had a very weak session, with the Nikkei cheapening by 1.1% and the Topix nearly 1.5%. The Korean KOSPI fared much better, gaining 1.2%. Chinese indices also gained slightly, with the Hang Seng up almost 0.4%.
  • Australia’s ASX index opened the session flat and closed the session up almost 0.5%. Australia’s Q1 GDP data indicated a 1.1% y/y increase versus 1.2% forecast and 1.5% previously. On a quarterly basis, GDP rose 0.1%, compared to expectations of 0.2% (0.2% previously). Final ISM services for May indicated 52.5 versus 53.1 forecasts and 53.6 previously. AUDUSD is trading up a modest 0.1% today
  • A strong Caixin PMI services reading from China did not translate into market ‘euphoria’, although the data suggested a significant improvement and came in at 54 versus expectations of 52.5 and 52.5 previously. Retail sales in the Singapore region, however, came in far weaker than forecasts suggested, falling -1.2% y/y vs. 1.9% growth forecasts and 2.7% previously. On a month-on-month basis, the decline was -2.7%, previously -1%. Fitch Ratings expects China’s insurance sector to do better in 2024
  • Brent crude oil is gaining just over 0.3% today and is trading above $78 per barrel. Yesterday’s API data suggests a strong increase in crude inventories (up 4 million barrels vs. over -6.5 million previous decline) and gasoline (up 4 million vs. -0.5 million previously). NATGAS is trading slightly higher. WTI crude is down for 6 consecutive sessions
  • Cryptocurrencies continue to perform solidly, with investors paying in the range of $71,000 for Bitcoin. EURUSD is trading flat, with contracts on the dollar index (USDIDX) posting a small 0.06% gain
  • Jake Sullivan stressed that although Biden will soon meet with Zelenski in Normandy, the US has no plans to deploy troops to Ukraine

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