Moving markets today: Asian stocks dip amid Europe-China trade tensions; BOJ maintains rates, oil prices decline; all eyes on US consumer confidence, import prices
The S&P 500 and Nasdaq closed at record highs for the fourth consecutive session, boosted by strong performances from technology stocks. However, Asian markets faced declines on Friday as investors assessed the Federal Reserve’s updated stance on future US interest rates. Oil prices are poised to end the week with gains, driven by optimistic forecasts for global demand. Meanwhile, gold prices stabilized on Friday after a recent drop triggered by the Federal Reserve’s announcement of fewer anticipated interest rate cuts. The Bank of Japan (BoJ) kept its overnight rates at 0.1 per cent, with no change in policy. Chinese companies seek anti-dumping probe of EU pork imports. In business news, Tesla shareholders approved Elon Musk’s $56 billion compensation package and the company’s decision to move its headquarters to Texas. Donald Trump also made headlines by promising tax cuts and regulatory reforms during a meeting with top US CEOs. Looking ahead to the end of the week, market watchers are focused on US consumer confidence data and import prices. Central bankers from the ECB and Federal Reserve are scheduled to deliver speeches, and the Bank of England will release its latest Inflation Attitudes survey. Despite British stocks closing lower on Thursday, futures indicate a positive start for Friday’s trading session. Here are five key takeaways for your day.
BOJ keeps overnight rates at 0.1 per cent, no change in policy
The Bank of Japan (BoJ) announced it would maintain its benchmark interest rate at 0 per cent, which was in line with expectations from the market. The decision was unanimous among the central bank officials. Additionally, the BoJ stated it intends to formulate a plan to gradually reduce its bond purchases over the next 1-2 years, with further details expected to be discussed at the next policy meeting.
Chinese companies seek anti-dumping probe of EU pork imports
Chinese firms have submitted a formal request for an anti-dumping investigation into pork imports from the European Union. This action follows the EU’s decision to impose anti-subsidy tariffs on electric vehicles manufactured in China, with tariffs as high as 38.1 per cent. The EU implemented these measures to safeguard its auto industry from competitive pressures. These moves have the potential to escalate tensions in a significant global trading relationship.
Donald Trump pitches tax and regulation cuts to US business leaders
Donald Trump promised tax cuts, fewer regulations, and higher tariffs to CEOs in Washington. He spoke after being convicted in a New York trial and met with Republicans in Congress.
What’s coming up
As the week wraps up, all eyes will be on the US. The University of Michigan will release its preliminary consumer confidence survey for June, focusing on the inflation expectations subindices. Earlier, the Department of Labor will publish May’s import price data. Throughout the day, several European Central Bank and Federal Reserve officials will be speaking. In the UK, the Bank of England will release its Inflation Attitudes survey.
Asian stocks dip on rising Europe-China trade tensions
The Dow Jones Industrial Average saw a slight decline, settling at 38,647.1, while the S&P 500 rose to 5,433.74 and the Nasdaq Composite reached 17,667.56, reflecting varied movements across major indices.
Technology stocks within the S&P 500 surged, particularly semiconductor companies, which set new record highs for their sector.
Broadcom’s shares jumped 12.3 per cent after the company raised its revenue forecast for semiconductors used in artificial intelligence and announced a significant stock split. Nvidia also performed well, gaining 3.5 per cent, while Apple showed a modest increase of 0.5 per cent. Adobe experienced a substantial after-hours trading boost, with its shares rising over 14 per cent following an upgrade in its annual sales and profit expectations.
In Asia, markets were subdued, with both Hong Kong and mainland Chinese indices dropping 0.5 per cent. EUROSTOXX 50 futures edged up 0.08 per cent. While the FTSE 100 closed 0.6 per cent lower after a strong previous session, futures indicated a positive start on Friday, rising by 0.24 per cent to 8184.0.
Oil prices saw a decline on Friday despite expectations of robust crude and fuel demand. Brent crude fell 0.41 per cent to $82.41 per barrel, and West Texas Intermediate (WTI) dropped 0.52 per cent to $78.21 per barrel. Spot gold remained unchanged at $2,303.43 per ounce.