Fixed Income Market Overview
U.S. Treasury bond yields declined on Tuesday following weaker-than-expected May retail sales, indicating potential economic softness. The 10-year Treasury yield fell over 6 basis points to 4.215%, while the 2-year yield dropped over 5 basis points to 4.708%. Retail sales increased just 0.1% in May, below economists’ 0.2% forecast, with April’s data revised downward to a 0.2% decline. These signs of a weakening consumer could prompt the Federal Reserve to consider rate cuts later this year. Minneapolis Federal Reserve President Neel Kashkari suggested a single rate cut might occur in December.
Hargreaves Lansdown supports £5.4bn private equity takeover.
Google’s Android apps are coming in 3D via Xreal as competition with Apple’s Vision Pro heats up.
Warren Buffett’s Berkshire Hathaway buys Occidental shares for 9 straight days, pushes his stake to nearly 29%.
U.S. May retail sales rise 0.1%, weaker than expected.
U.S. crude oil holds above $80 per barrel after starting week with strong gains.
Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 38,834.86 | 56.76 | 0.15%↑ |
| NASDAQ | 19,908.86 | 6.11 | 0.03%↑ |
| S&P 500 | 5,487.03 | 13.80 | 0.25%↑ |
| NIKKEI | 38,482.11 | 379.67 | 1.00%↑ |
| HSI | 17,915.55 | -20.57 | -0.11%↓ |
| VIX | 12.30 | -0.45 | -3.53%↓ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.23% | -0.06 |
| US 30-YR | 4.36% | -0.05 |
| US 5-YR | 4.25% | -0.06 |
| JPN 10-YR | 0.95% | 0.01 |
| UK 10-YR | 4.05% | -0.07 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 81.57 | 1.24 | 1.54%↑ |
| NAT GAS | 2.909 | 0.121 | 4.34%↑ |
| GOLD | 2,346.90 | 17.90 | 0.77%↑ |
| SILVER | 29.56 | 0.17 | 0.59%↑ |
| COPPER | 4.491 | 0.043 | 0.97%↑ |
Equity Market Overview
European stocks rose on Tuesday, with the Stoxx 600 index gaining 0.64% by late afternoon. Most sectors were up, led by construction stocks, while household goods slightly declined. Euro area inflation increased to 2.6% in May from 2.4% in April, with EU-wide inflation at 2.7%. Investors are closely watching these inflation figures for clues about the European Central Bank’s next moves. Attention is also on the Bank of England’s policy decision on Thursday, expected to hold rates steady at 5.25%. In Asia-Pacific, markets rebounded as Wall Street surged, anticipating the Reserve Bank of Australia’s interest rate decision.
Meanwhile, the S&P 500 and the Dow rose, buoyed by softer-than-expected U.S. retail sales data showing a 0.1% increase in May, below the expected 0.3%. This fueled speculation of two interest rate cuts by the Fed this year. Despite weak retail sales, May industrial production and manufacturing output rose by 0.9%. Chip stocks surged, lifting the Philadelphia SE Semiconductor index to a record high. The Nasdaq was flat due to mixed performance among tech giants. Trading volumes were light ahead of the Juneteenth holiday. Energy stocks led gains in the S&P 500, while utilities lagged. Investors focused on Fed commentary for future monetary policy clues, with expectations of gradual rate cuts.
