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U.S. indices closed yesterday’s session mostly higher; the Nasdaq 100 gained 0.7%, while the S&P 500 gained nearly 0.3% and closed at a new historic high. At the same time, the Dow Jones retreated 0.3% and some weakness was also evident in the Russell 2000 stock benchmark

Wednesday News
  • U.S. indices closed yesterday’s session mostly higher; the Nasdaq 100 gained 0.7%, while the S&P 500 gained nearly 0.3% and closed at a new historic high. At the same time, the Dow Jones retreated 0.3% and some weakness was also evident in the Russell 2000 stock benchmark
  • Stocks in the banking sector of J.P. Morgan and Citigroup, among others, posted fairly sizable declines yesterday, but the technology sector fared well led by a more than 7% rise in Apple shares as the company expects more AI catalysts to its business
  • Following a large auction of $39 billion worth of U.S. Treasury bonds, we could see slightly rise in expectations that the Fed may cut interest rates this year if the CPI report turns out to be soft. US 10-year treasury bond yields fell to 4.40%, and demand at the auction of 10-year US debt was strong, with the highest bid coverage rate since February 2022.
  • Today, traders are preparing for the US CPI reading at 1:30 PM BST and the Fed decision and Powell conference (7 PM BST and 7:30 PM BST)
  • The Asian session was dictated by sellers. The Hang Seng lost nearly 1.3% today after CPI inflation readings from China. Japan’s Nikkei and Topix benchmarks also performed poorly, with a 0.6% and nearly 0.8% correction, respectively
  • In May, CPI inflation from China, on an annual basis, rose 0.3% against 0.4% forecast and 0.3% previous reading, for April. Month-on-month, CPI fell -0.1%, compared to a 0.1% increase in April relative to March.
  • On a year-on-year basis, China’s PPI producer price inflation fell -1.4% in May, compared to an expected decline of -1.5% and -2.5% previously.
  • The data did not please investors, pointing to the ever-present ‘deflationary’ problem in the country, signalling weaker consumer demand; the data was disappointing especially when considering that the economic climate in May last year was weak
  • After yesterday’s dynamic rise from $606 to over $630 per bushel, Chicago wheat futures are trading a gentle pullback to $625 per bushel, ahead of today’s WASDE supply and demand estimates report
  • Platinum contracts gain nearly 1.5%, and silver is trading less than 0.5% higher. Gold, however, is down a modest 0.15% and is still trading near $2,300 per ounce
  • Bitcoin managed to make up a small portion of yesterday’s losses and now costs $67,700 while Ethereum is back above $3500
  • The dollar index is trading up slightly today, while the EURUSD pair is losing slightly. Brent Crude oil is trading above $82 per barrel and is gaining more than 0.3%

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