Fixed Income Market Overview
U.K. headline inflation hit the Bank of England’s 2% target for the first time in nearly three years, reducing expectations for an imminent interest rate cut. Money market odds for a cut at Thursday’s BOE meeting fell to 5%, with August cut bets trimmed to 30%. Core inflation stayed high at 3.5%, and services inflation was above forecast at 5.7%. Despite seasonal food price drops, services inflation driven by wages remains a concern. BOE may hold rates due to economic indicators, with potential rate cut decisions being closely watched ahead of the general election.
Amazon Commits Another €10 billion to German Cloud, Logistics.
S&P 500 climbs to another record close Tuesday as Nvidia’s market cap tops Microsoft.
TSMC Nears $1 Trillion Valuation as Target Upgrades Boost Rally.
Luxury sneaker maker Golden Goose postpones IPO citing political turmoil in Europe.
Oil steady amid US stock build but jitters abound.
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 | 38,570.76 | 88.65 | 0.23%↑ |
| HSI | 18,430.39 | 514.84 | 2.87%↑ |
| VIX | 12.30 | 0.00 | 0.00%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.23% | 0.00 |
| US 30-YR | 4.36% | 0.00 |
| US 5-YR | 4.25% | 0.00 |
| JPN 10-YR | 0.94% | -0.01 |
| UK 10-YR | 4.07% | 0.01 |
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 closed lower on Wednesday, with the Stoxx 600 index down 0.18%, diverging across sectors. Tech stocks led the decline, falling 1.15%, while mining stocks rose by 0.65%. The U.K.’s FTSE 100 recovered to end up 0.2% after May’s inflation rate met the Bank of England’s 2.0% target, ahead of a policy rate decision expected to hold steady at 5.25%. Sterling saw a slight increase, trading at $1.2722. Notably, Games Workshop shares surged 9% on a strong profit forecast. Eurostat confirmed euro zone inflation rose to 2.6% in May. Meanwhile, Asia-Pacific markets mostly rose following new highs in key U.S. benchmarks, driven by Nvidia’s valuation surge. U.S. markets remained closed for the Juneteenth holiday, contributing to a quieter trading session in Europe.
