Fixed Income Market Overview
U.S. Treasury bond yields rose on Thursday as investors evaluated new economic data suggesting a slowing economy. The 10-year Treasury yield increased nearly 6 basis points to 4.273%, while the 2-year yield rose around 4 basis points to 4.748%. Initial jobless claims rose and housing starts fell more than expected, along with a weak Philadelphia Fed Manufacturing Index reading. Concurrently, the Bank of England held interest rates steady at 5.25%, despite inflation hitting its 2% target. The decision was “finely balanced” with seven members voting to hold and two favoring a cut. Markets now price nearly a 50% chance of an August rate cut, influenced by subtle dovish signals and cooling inflation indicators. This decision precedes a general election, with the Bank maintaining a focus on its data amidst economic uncertainties. Meanwhile, other central banks in Europe have begun to ease monetary policy to stimulate growth, contrasting with the U.S. Federal Reserve’s current stance.
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Major Indicies
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DJIA | 39,134.76 | 299.90 | 0.77%↑ |
| NASDAQ | 19,752.30 | -156.56 | -0.79%↓ |
| S&P 500 | 5,473.17 | -13.86 | -0.25%↓ |
| NIKKEI | 38,633.02 | 62.26 | 0.16%↑ |
| HSI | 18,335.32 | -95.07 | -0.52%↓ |
| VIX | 13.28 | 0.80 | 6.41%↑ |
Bonds
| Name | Yeild | CHG |
|---|---|---|
| US 10-YR | 4.26% | 0.04 |
| US 30-YR | 4.40% | 0.04 |
| US 5-YR | 4.29% | 0.03 |
| JPN 10-YR | 0.96% | 0.02 |
| UK 10-YR | 4.06% | -0.01 |
Futures & Commodities
| Name | Last | Change | %Change |
|---|---|---|---|
| WTI CRUDE | 82.17 | 0.60 | 0.74%↑ |
| NAT GAS | 2.741 | -0.168 | -5.78%↓ |
| GOLD | 2,369.00 | 22.10 | 0.94%↑ |
| SILVER | 30.82 | 1.26 | 4.25%↑ |
| COPPER | 4.562 | 0.072 | 1.59%↑ |
Equity Market Overview
European stocks closed higher on Thursday, with the Stoxx 600 gaining 0.88% as investors reacted to central bank policy decisions. Tech stocks led the gains, rising over 1.63%. The Bank of England held interest rates at 5.25%, aligning with expectations following U.K. inflation hitting 2.0% in May. The Swiss National Bank cut its policy rate by 0.25 percentage points to 1.25%, continuing its policy easing. Norway’s central bank maintained its rate at 4.5% and plans to keep it there through 2024. Shares of Evotec rose over 15% on buyout interest, while Tate & Lyle fell nearly 11% after announcing a major acquisition.
Meanwhile, Asia-Pacific markets mostly declined as China kept its one- and five-year loan prime rates steady at 3.45% and 3.95%, respectively. The CSI 300 fell 0.72% and the Hang Seng index dropped 0.65%, with Haidilao, Shenzhou International, and Budweiser Brewing APAC among the top losers. South Korea’s Kospi rose 0.37%, while the Kosdaq decreased 0.43%. Japan’s Nikkei 225 edged up 0.16%, but the Topix dipped 0.11%. Taiwan’s index increased by 0.85%, hitting new highs. Australia’s S&P/ASX 200 was flat, with Guzman y Gomez shares soaring 36% in their debut. New Zealand’s economy grew 0.2% in Q1, exiting a technical recession. Stateside, the S&P 500 reached a new high.
