🚀 June’s AI-picked stocks soar, with Adobe +18.1% in 11 days. Don’t miss July’s upcoming picks.Unlock full list

Morning Bid: News vacuum sucks momentum from markets

Published 2024-05-21, 12:31 a/m
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 15, 2024. REUTERS/Staff/File Photo
JP225
-
HK50
-
NVDA
-
CL
-
NQU24
-

A look at the day ahead in European and global markets from Kevin Buckland

Stock market momentum is waning as a dearth of fresh economic clues sees the feverish punting over the pace of Federal Reserve rate cuts finally settle down.

Most Asian equity indexes declined on Tuesday, led by the Hang Seng's more than 2% retreat from the previous session's multi-month high. Japan's Nikkei stood out as the sole beneficiary of the Nasdaq's record run overnight into Nvidia (NASDAQ:NVDA)'s much-anticipated earnings on Wednesday.

AI fever aside, the Fed sits squarely at the center of the market universe, with all asset classes in its orbit. That includes crude oil, gold and base metals, and soaring cryptocurrencies, even if idiosyncratic drivers are also at play.

Investors rushed to reintroduce Fed easing bets after a long-in-coming downside CPI surprise last week, but Fed officials have been less sanguine, collectively striking a cautious posture.

As it stands now, about 40 basis points of easing are priced in for this year, with a quarter-point reduction by November considered a lock, much like where odds stood a week ago.

More Fedspeak is in store today, with Governor Christopher Waller and no fewer than four regional Fed bosses taking the podium at various events. Minutes of the Fed's last policy meeting due Wednesday will be valuable, but predate the softening in CPI after three straight months of upside surprises.

Elsewhere, Bank of England Governor Andrew Bailey gives a lecture at the London School of Economics. UK CPI will be closely watched, but isn't due till Wednesday.

Tuesday's local data docket is light, with the highlight around Europe being German producer price figures for April.

Key developments that could influence markets on Tuesday:

-Germany producer prices (April)

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 15, 2024. REUTERS/Staff/File Photo

-BoE Governor Andrew Bailey speaks

-Fed Governor Waller, New York Fed's Williams, Atlanta Fed's Bostic, Cleveland Fed's Mester, Boston Fed's Collins, Richmond Fed's Barkin all speak at various events

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.