14/06/2023
Today’s Announcements & News
Asia
On Tuesday, Japan’s Nikkei 225 index experienced a significant rise of 1.8%, surpassing the key psychological level of 33,000 points. This marked the first time since July 1990 that the index reached such heights, closing at 33,018.65. Additionally, the Topix index also achieved new highs for the year 2023, closing with a 1.16% increase at 2,264.79.
Across the Asia-Pacific region, markets saw positive momentum in anticipation of the U.S. inflation report and the Federal Reserve’s two-day meeting scheduled for later in the day. It is widely expected that the central bank will maintain interest rates, which would be the first time in 15 months. The latest New York Fed survey indicated that annual inflation expectations in the United States reached a two-year low.
In Australia, the S&P/ASX 200 index resumed trading after a public holiday and recorded a 0.23% rise, closing at 7,138.9. South Korea’s Kospi index rebounded and increased by 0.33%, ending the day at 2,637.95. The Kosdaq index also experienced a significant surge of 1.25%, closing at 896.81.
Meanwhile, Hong Kong’s Hang Seng index extended its winning streak to four days, rising by 0.71% in the final hour of trade. In mainland China, the Shanghai Composite index showed a modest gain of 0.15%, concluding the day at 3,233.67. Additionally, the Shenzhen Component index continued its upward trend, gaining 0.76% and closing at 10,955.96. This marked the fourth consecutive day of gains for the Shenzhen Component.
United States
On Tuesday, stocks experienced a rise as new inflation data revealed a slowdown in price pressures during May. This development increased investor optimism that the Federal Reserve might refrain from raising interest rates at its upcoming policy meeting.
The Dow Jones Industrial Average saw an increase of 145.79 points, or 0.43%, closing at 34,212.12. The S&P 500 rose by 0.69% to close at 4,369.01, while the Nasdaq Composite advanced 0.83% and settled at 13,573.32.
During Tuesday’s session, both the S&P 500 and the Nasdaq reached new 13-month highs. The closing levels achieved were the highest since April 2022. Currently, the broader S&P 500 index has risen approximately 25% from its low point in October, surpassing the basic definition of a bull market.
The consumer price index for May showed a 4% year-over-year increase, marking the slowest annual rate since March 2021. Following the release of the report, traders increased their expectations that the Federal Reserve would maintain the current interest rates during its meeting on Wednesday. The latest odds indicated a roughly 91% chance that the central bank would keep rates within the target range of 5% to 5.25%, according to the CME Group’s FedWatch tool.
Commodity
On Tuesday, gold prices declined due to a rebound in Treasury yields, while traders solidified their expectations that the Federal Reserve would maintain interest rates unchanged following the release of data indicating a slowdown in U.S. consumer price gains during May.
The spot gold price dropped by 0.6% to $1,944.0499 per ounce. Earlier in the day, gold had briefly risen by as much as 0.7% in response to the U.S. inflation data.
oil prices experienced a 3% increase, rebounding from significant losses in the previous session. This was driven by the decision of China’s central bank to lower a short-term lending rate, marking the first rate cut in 10 months.
The rate cut was intended to provide a boost to the post-pandemic recovery of the Chinese economy, which is the world’s second-largest economy and the largest importer of crude oil. The expectation is that this move will contribute to an increase in oil demand.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.
