CURRENCY MARKET WRAP
As of Wed, Jun 12th, Singapore Time zone UTC+8
Dollar Index -0.05%, 96.71
USDJPY, +0.07%, $108.47
EURUSD, +0.13%, $1.1329
GBPUSD, +0.27%, $1.2724
USDCAD, +0.10%, $1.3281
AUDUSD, +0.01%, $0.6960
NZDUSD, -0.38%, $0.6584
U.S. Producer Price Index for final demand increased 0.1% (consensus +0.1%) while the index for final demand, less food and energy, increased 0.2% (consensus +0.2%). The expected readings left the yr/yr changes at 1.8% and 2.3%, respectively, versus 2.2% and 2.4% in April. The moderation in producer price is another data point that validates an eventual rate cut by the Fed.
U.S. Treasuries finished the session mixed. The 2-yr yield increased three basis points to 1.93%, and the 10-yr yield finished flat at 2.14%. The U.S. Dollar Index declined 0.05% to 96.71. WTI crude increased 0.1% to $53.34/bbl.
China’s beaten down stocks posted their best gains in weeks (+2.6%) on news local governments will have more room to spend on infrastructure, offsetting Trump’s latest threat of more tariffs. Construction-related stocks rallied after the finance ministry said it would ease restrictions on the spending of proceeds from special bond sales and encourage banks to offer loans to projects funded by such debt.
STOCK MARKET WRAP
S&P500, -0.03%, 2,885.88
Nasdaq, +0.16%, 7,513.85
Nikkei Futures, -0.33%, 21,080.0
The S&P 500 jumped out to a 0.8% gain out of the gate, but a lack of general buying conviction after a lengthy rally helped snap its winning streak. The S&P 500 declined 0.03%. Most of the S&P 500 sectors finished near their unchanged marks. The consumer staples (+0.4%), consumer discretionary (+0.3%), and communication services (+0.3%) sectors outperformed the broader market. Facebook (FB 178.10, +3.28) was a notable gainer, advancing 1.9% after the stock was upgraded to Buy from Neutral at MoffettNathanson.
The S&P 500 utilities (-0.7%) and industrials (-0.9%) sectors were Tuesday’s laggards. The underperformance in the aerospace-and-defense stocks contributed to the weakness in the industrial sector after a Wall Street Journal report suggested Pentagon spending may slow down. The iShares Dow Jones US Aerospace & Defense ETF (ITA 205.79, -4.87) lost 2.3%.