U.S. index futures show mixed results this Monday, with markets entering the last week of June and the first half of 2024 near highs. Investors are focused on the release of the Personal Consumption Expenditures (PCE) index on Friday, the Federal Reserve’s preferred inflation gauge for guiding interest rate decisions.
At 6:31 AM, Dow Jones futures (DOWI:DJI) rose 96 points, or 0.24%. S&P 500 futures advanced 0.08%, and Nasdaq-100 futures lost 0.10%. The 10-year Treasury yield stood at 4.261%.
In the commodities market, West Texas Intermediate crude for August fell 0.07% to $81.24 per barrel. Brent crude for August fell 0.11% to near $85.62 per barrel. Last week, oil prices increased by approximately 3%, driven by rising demand for petroleum products in the United States, the world’s largest consumer. This increase was also supported by ongoing production cuts implemented by OPEC+, which helped maintain a tight supply. Iron ore traded on the Dalian exchange fell 3.11% to $109.56 per metric ton.
On Monday’s economic agenda, the Chicago Fed National Activity Index reading for May will be released at 8:30 AM by the Chicago Fed. The PCE, the week’s main economic indicator, will be released on Friday, with LSEG consensus forecasting a monthly change of 0.30% in the core indicator for May, compared to April.
Asia-Pacific markets faced significant declines as investors eagerly awaited upcoming inflation data from Australia and Japan.
There is a growing expectation that a higher-than-expected increase in inflation could lead the Reserve Bank of Australia to raise interest rates, deviating from the predominant rate cut expectations in the region. The Bank of Japan discussed raising rates, awaiting a clear inflation recovery. Last week, BOJ Governor Kazuo Ueda reportedly told the country’s parliament that the central bank could raise rates in July.
In response, Australia’s S&P/ASX 200 index fell 0.8% to close at 7,733.7, while Japan’s Nikkei 225 rose 0.54% to 38,804.65. Hong Kong’s Hang Seng fell 0.88%, China’s Shanghai Composite declined 1.17%, and South Korea’s Kospi lost 0.70%.
European markets showed a positive performance on Monday morning, reflecting investor optimism. The automotive sector showed significant gains, while the retail sector faced a downturn. The scenario reflects investors’ anticipation of the release of GDP data from Spain and Italy, as well as upcoming interest rate decisions by the central banks of Sweden and Turkey.
On Friday, U.S. stocks showed a lack of direction, following mixed performances in previous sessions. The Dow Jones rose 15.57 points, or 0.04%, to 39,150.33 points, while the S&P 500 fell 8.55 points, or 0.16%, to 5,464.62. The Nasdaq fell 32.23 points, or 0.18%, to 17,689.36. The S&P 500 gained 0.6% last week, marking its eighth positive week in nine. Nvidia (NASDAQ:NVDA), which had fallen 3.5% on Tuesday, dropped another 3.2% in the last session. The Conference Board’s Leading Economic Index fell 0.5% in May after a 0.6% decline in April. Existing home sales in the U.S. fell 0.7% to an annual rate of 4.11 million.
On the quarterly earnings front, MoneyHero (NASDAQ:MNY), Enerpac Tool Group (NYSE:EPAC), and Beyond Air (NASDAQ:XAIR) are reporting.