As of Thu, Jun 13th, Singapore Time zone UTC+8
Dollar Index +0.28%, 96.96
USDJPY, +0.02%, $108.50
EURUSD, -0.31%, $1.1293
GBPUSD, -0.24%, $1.2693
USDCAD, +0.40%, $1.3334
AUDUSD, -0.43%, $0.6930
NZDUSD, -0.12%, $0.6576
High expectations for the Fed to signal for a rate cut in its policy meeting next week were bolstered by soft inflation data in the Consumer Price Index (CPI) for May. Total CPI increased 0.1% as expected. In trade, the market remains hopeful for a Trump-Xi meeting at the G-20 summit at the end of the month, although reports indicated there have been little preparations for a meeting.
The 2-yr yield declined four basis points to 1.89%, and the 10-yr yield declined one basis point to 2.13%. The U.S. Dollar Index advanced 0.28% to 96.96.
Chinese CPI (2.7% y/y as expected) rose at the fastest pace in 15 months in May thanks to high pork prices, after farmers were forced to cull hogs amid a countrywide outbreak of African swine fever. Pork prices rose 18.2% y/y in May, pushing up the broader food basket 7.7%.
S&P500, -0.20%, 2,879.84
Nasdaq, -0.55%, 7,472.29
Nikkei Futures, -1.00%, 20,997.5
S&P 500 declined 0.2% on Wednesday in a lackluster session that saw little buying conviction from investors. The S&P 500 energy sector (-1.4%) was Wednesday’s worst-performing group, falling on the back of oil prices ($51.16, -$2.18, -4.1%) amid bearish inventory data. The financials sector (-1.0%) was undercut by lower Treasury yields and by shares of Wells Fargo (WFC 44.91, -1.35, -2.9%) after it warned net interest income for 2019 will be at the low end of prior guidance.
Separately, shares of Facebook (FB 175.04, -3.06, -1.7%) were hit by more scrutiny of the company’s privacy practices. The Wall Street Journal indicated sources that said Facebook uncovered emails suggesting CEO Mark Zuckerberg wasn’t prioritizing privacy or complying with the FTC consent decree. Facebook denied any intentional wrongdoing from Zuckerberg.