Login ID:
Partner Login
Contact Us : 7066511911

Global Market Update: Asian Shares Pull Back Amid Profit-Taking, U.S. Dollar Strengthens as European Central Banks Ease

21 Jun 2024 8:45 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

Mumbai, 21 Jun (Commoditiescontrol): Asian shares are ending the week on a subdued note following a rally to 26-month highs earlier in the week, which prompted profit-taking. Meanwhile, the strength of the U.S. dollar, driven by rate cuts from European central banks, continues to pressure the yen towards the intervention zone.

Overnight, the Swiss National Bank cut rates for the second time, and the Bank of England signaled potential easing in August after holding rates steady. This caused the sterling, the Swiss franc, and the euro to fall, thereby lifting the dollar broadly.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.6% on Friday, dragged down by a pull-back in technology shares, mirroring a mixed session on Wall Street overnight. The index is still set for a weekly gain of 1% after hitting its highest level since April 2022 on Wednesday, buoyed by a series of soft U.S. economic data that reinforced expectations of two rate cuts from the Federal Reserve later this year.

Japan's Nikkei rose 0.1%, while the yen eased another 0.1% to 159.01, its weakest level since late April when Japanese authorities intervened to halt the currency's rapid decline. Data released earlier showed Japan's demand-led inflation slowed in May, complicating the outlook for interest rate hikes.

Chinese stocks were mostly flat, with the Shanghai Composite index struggling to stay above the critical 3,000-point level. Hong Kong's Hang Seng index tumbled 0.9%.

In foreign exchange markets, the euro nursed losses at $1.0705 after falling 0.4% overnight due to accelerated European rate cuts, while sterling remained flat at $1.2658, its lowest in five months. The dollar also held its gains against the Swiss franc at 0.8916 francs, having jumped 0.8% overnight.

Conversely, a still hawkish rate outlook for Australia's central bank has propelled the local dollar to a 17-year high against the low-yielding yen, reaching 105.85 yen.

U.S. Treasuries are set to end the week on a weaker note. The two-year yields edged up 2 basis points (bps) on Friday to 4.745% and were up 6 bps for the week, while the 10-year yield rose 1 bps to 4.2672%, bringing the weekly increase to 5 bps.

Oil prices consolidated on Friday after hitting seven-week highs earlier in the week. Brent futures slipped 0.1% to $85.59 a barrel, while U.S. crude also dipped 0.1% to $81.19 a barrel. Gold prices remained flat at $2,358.83 per ounce.

(By Commoditiescontrol Bureau: 09820130172)

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Post Comment  

Latest Market Commentary
Global Markets Update: Gold Reaches Record High as Mark...
Global Market Update: Asian Shares Slide Amid Trump Vic...
Global Market Update: Market Volatility Increases Amid...
Global Market Update: Asian Stocks Benefit from Rate Cu...
Global Market Update: Global Stocks Surge Ahead of U.S....
Top 5 News
ZCE Cotton And Yarn Evening Closing - 17 Jul 2024
DCE Oil Complex Evening Closing - 17 Jul 2024
Mentha Oil Prices Extend Gains for Second Straight Day
Guar Seed & Gum Prices Steady; Futures Trade Suspended ...
London Metal Exchange Settlement - 17-Jul-2024
Top 5 Special Reports
USDA Forecasts Global Cotton Production Surge, Expects ...
Argentina's Currency Market Intervention: Will It Reviv...
Weekly: Sugar Prices Decline Amid Strong Brazilian Outp...
Weekly: Cotton Extend Loss For 7th Week; Bears Tighten ...
USDA lowers 2024-25 global soybean production estimates...
Copyright © CC Commodity Info Services LLP. All rights reserved.