Global markets in a holding pattern

Wall Street indices closed higher yesterday, rebounding from earlier losses in the session, driven by reduced expectations of Federal Reserve rate cuts, which supported a strong US Dollar.

By Farah Mourad | 11 June 2024

Market open
  • Asian markets were mixed today

  • The UK's unemployment rate increased to 4.4%

  • Precious metals, including gold and silver, are retreating

Stock Market

Wall Street indices closed higher yesterday, rebounding from earlier losses in the session. The US Dollar remains strong due to diminished expectations of two Federal Reserve rate cuts in 2024.

Asian markets were mixed today, with Japan's Nikkei gaining while Chinese indices fell. The Japanese Yen weakened as the Bank of Japan is anticipated to keep interest rates unchanged on Friday, which has supported Japanese equities but undermined the Yen.

European index futures suggest a flat or slightly positive opening for major indices. Markets await the US CPI and FOMC rate decision tomorrow.

UK's Unemployment Rate

The report showed an increase to 4.4% in the three months to April, slightly above expectations. Additionally, jobless claims rose significantly, impacting GBP/USD, which is trading lower at 1.272.

EUR leading the major currencies, while JPY is lagging the most.

Precious Metals

Precious metals are retreating, with gold and silver down, yet we can see the strongest declines in platinum. Metal prices are pressured by reduced bets on Fed rate cuts, though political and geopolitical uncertainties are limiting further declines. Traders are also cautious ahead of the upcoming US CPI and FOMC decisions.