Pre-Opening of the European Markets
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Stock Markets So Far For Today – 28 May 2021

Asian markets rose today after Wall Street’s good close yesterday. The ASX200 closed +1.2%, the Nikkei +2.2%and the Hang Seng ended with a gain of +0.7%.

Turning to the European pre -opening, investors saw a rise in European markets ahead of the latest report on consumer confidence and the business climate in the European Zone. Additionally, news of U.S. President Joe Biden unveiling an estimated $ 6 trillion for fiscal 2022 adds to the global stock market’s upside drive so far.

Current Bias of Major Currencies So Far

🇺🇸 USD – Strong Bullish
1️⃣ Fed vice chief Randal Quarles signals the FED’s central bank plans to open talks on easing the U.S. bond -buying programme.
2️⃣ New jobless claims in the US fell more than expected.
3️⃣ Index Personal Spending (PCE) for April is forecast to rise due to the increase of wages in April.
4️⃣ The latest U.S. budget plan could result in stronger spending as well as faster growth.

🇬🇧 GBP – Strong Bullish
1️⃣ Bank of England’s policy maker said that the central bank is likely to raise interest rates as early as next year, and pointed out that if the economy rebounds faster, interest rates may rise faster.
2️⃣ The UK relaxed restrictive measures further on Monday with cafes, bars and restaurants reopening for indoor service and a ban on international travel being lifted.

🇪🇺 EURO – Weak Bearish
1️⃣ A comment from European Central Bank policymaker Panetta says that it may be too early to discuss a reduction in emergency bond purchases.

🇳🇿 NZD – Weak Bullish
1️⃣ The RBNZ delivered a ‘Hawkish’ tone at today’s meeting by projecting that New Zealand interest rates will rise by 0.25% to 0.5% in September 2022.
2️⃣ Positive global market sentiment gives the NZD an advantage.

🇨🇦 CAD – Strong Bullish
1️⃣ A ramp-up in global vaccination efforts and a strong economic recovery could push the loonie higher.
2️⃣ The Canadian central bank is expected to keep its current guidance on interest rate hikes starting in the second half of 2022.
3️⃣ Rising oil prices underpinned the CAD.

🇦🇺 AUD – Strong Bearish
1️⃣ Victoria has recorded 4 new local cases of coronavirus, following an announcement of a 7-day circuit breaker lockdown to contain a new cluster.
2️⃣ Trade Minister Dan Tehan said Beijing’s decision to slap an 80 percent tax on imports of the grain from Australia had “effectively stopped Australia’s barley trade with China.”

🇯🇵 JPY – Strong Bearish
1️⃣ The rise in global markets was mainly due to Joe Biden’s budget plan, putting pressure on the Yen.

🇨🇭 CHF – Weak Bearish
1️⃣ The weakness of the Euro could have a similar impact on the CHF as Switzerland is Europe’s main trading partner.
2️⃣ As a safe-haven currency, the CHF tends to weaken in risk-on markets.

Commodity Markets Recap

1️⃣ Crude oil prices traded higher due to strong US economic data and expectations of a strong rise in global demand in the 3rd quarter.

2️⃣ Gold prices slipped from a more than 4 -month high to below $ 1,900 following rising U.S. treasury bond yields.

Economic Data Focus In New York Session

1️⃣ US Core PCE for April (20:30 Malaysia Time) — Bullish Prediction — Strong wage growth.