Global Stock Markets Show Mixed Results; Gold and Silver Trim Friday’s Gains – APM Capital Market Report

Mark Pussard, Head of Risk, APM Capital

On Monday, global stock markets, like the U.S., presented a mixed picture with a combination of modest gains and losses across major indices.

US markets 

Wall Street closed with mixed results on Monday as investors anticipated fresh inflation data, Federal Reserve Chair Jerome Powell’s commentary, and the beginning of the quarterly earnings season.

The Standard and Poor’s 500 inched up by 5.66 points, or 0.10 percent, to close at 5,572.85, a new all-time record, with a trading volume of 2.368 billion.

Conversely, the Dow Jones Industrial Average (DJIA) declined by 31.08 points, or 0.08 percent, ending the day at 39,344.79, on a trading volume of 364.051 million.

The NASDAQ Composite showed a more substantial gain, rising by 50.98 points, or 0.28 percent, to finish at a new record closing high of 18,403.74, with a trading volume of 4.825 billion.

The CBOE Volatility Index (VIX), often seen as a measure of market fear, dropped by 0.11 points, or 0.88 percent, to 12.37.

European market 

Most European bourses ended Monday’s session little changed, but in the red, as investors digested the political stalemate in France, where no party managed to garner a majority in the second round of elections to the National Assembly at the weekend.

The FTSE 100 slipped by 10.44 points, or 0.13 percent, to 8,193.49

Germany stocks were mixed after the close on Monday, as gains in the Insurance, Food & Beverages and Transportation & Logistics sectors led shares higher while losses in the Construction, Retail and Utilities sectors led shares lower.

Germany’s DAX Performance-Index slightly decreased by 3.40 points, or 0.02 percent, to 18,472.05.

Asian market

Asia-Pacific markets experienced widespread declines on Monday, influenced by weak economic indicators and anticipation of key economic data from the US and China later in the week.

Japan’s Nikkei 225 fell by 131.67 points, or 0.32 percent, to 40,780.70, and the Topix index dropped 0.57% to 2,867.61.

The decline came on the heels of a report from Japan’s Ministry of Health, Labor, and Welfare showing that real wages fell by 1.4% year-on-year in May, marking the 26th consecutive month of decline.

Hong Kong’s stock market ended lower on Monday with the benchmark Hang Seng Index down 1.55 percent to close at 17,524.06 points.

The Hang Seng China Enterprises Index lost 1.53 percent to end at 6,284.73 points, while the Hang Seng Tech Index dropped by 0.84 percent to close at 3,566.63 points.

The Indian equity market witnessed a negative trend for the fourth consecutive session on Monday with BSE Sensex slipping 36.22 points to settle at 79,960.38. The Nifty 50 closed 3.30 points or 0.01% lower, than its previous close, at 24,320.55.

Commodities 

The Gold price made a U-turn on Monday, trimming some of last Friday’s gains and tanking more than 1% as risk appetite returned. US equities posted gains, while US Treasury bond yields edged lower. 

The XAU/USD trades at $2,358 after hitting a daily high of $2,391.

West Texas Intermediate (WTI) eased lower on Monday, bleeding bids as broad-market fears of supply disruptions from Tropical Storm Beryl have receded. Monday’s updates to the storm’s projected dissipation has pulled technical support from beneath Crude bids, extending Friday’s declines and sending WTI down to $81.60.

Silver price trimmed some of its last Friday’s gains. XAG/USD reversed its course after hitting a daily high of $31.36, trading at $30.79, down more than 1.30%.

Forex 

Foreign Exchange Market Sees Minor Moves on Monday As U.S. Dollar is Sidelined

The foreign exchange market experienced minor movements on Monday, with most major currency pairs showing slight changes in value.

The Euro/US Dollar (EUR/USD) pair edged up by 0.01 percent to 1.0825, a small increase of 0.00013.

The US Dollar/Japanese Yen (USD/JPY) pair also rose by 0.01 percent, reaching 160.81, a modest gain of 0.02.

The US Dollar/Canadian Dollar (USD/CAD) pair saw a negligible increase of 0.01 percent, remaining steady at 1.3636 with no significant change.

Similarly, the British Pound/US Dollar (GBP/USD) pair inched up by 0.02 percent to 1.2807, with no notable fluctuation.

The US Dollar/Swiss Franc (USD/CHF) pair rose by 0.01 percent to 0.8977, maintaining its previous level without any significant movement. The Australian Dollar/US Dollar (AUD/USD) pair remained unchanged at 0.6736, reflecting a stable position with no change.

Lastly, the New Zealand Dollar/US Dollar (NZD/USD) pair experienced a slight rise of 0.01 percent to 0.6125, a small increase of 0.00004.

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Last Updated on 7 months by News Desk 2