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Stocks mixed as PMI data supports Asia

Asian equities traded mixed on Wednesday as manufacturing data from China and Japan supported sentiment in some markets, while South Korean stocks came under pressure as investors took profits after a stellar quarter. US stocks had closed higher on Tuesday, led by another strong advance in technology shares. The latest US job openings data meanwhile pointed to a labour market that is cooling only gradually. Gold remained below USD 4000 per ounce as the US Dollar Index stayed firm, US Treasuries rose across the curve and oil prices increased slightly. Investors now turn to speeches by ECB President Christine Lagarde and Fed Chair Kevin Warsh later on Wednesday.

  • Date
  • Auteur Shane Strowmatt, Senior Investment Writer
  • Temps de lecture 5 minutes

market numbers
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Asian stock indices traded unevenly on Wednesday, with South Korea’s KOSPI falling 1.7% as investors took profits after a near-65% surge in the second quarter, while Japan’s Nikkei 225 rose 0.8% and China’s CSI 300 gained 0.3%. Chinese shares were supported by Purchasing Managers' Index (PMI) data showing manufacturing activity remained in expansion territory in June, while Japan’s latest Tankan survey and factory PMI pointed to a firmer corporate backdrop and stronger industrial momentum than in May. Elsewhere in the Asia-Pacific region, Australia’s S&P/ASX 200 lost 0.6%, while India’s Nifty 50 was up 0.5% on Wednesday.

US stocks extend tech-led rally

US stocks advanced again on Tuesday, with the Nasdaq 100 rising 1.7% to 30,276.35 points after a 2% gain on Monday, as investors used the recent pullback to add to AI-linked technology shares. The S&P 500 added 0.8% to 7499.36 points and completed its strongest quarter in six years, while the Dow Jones Industrial Average gained 0.3% to 52,319.20 points. The Nasdaq 100 is now up about 20% since the start of the year, compared with a 9% rise for the Dow, highlighting how heavily the US market’s recovery has depended on technology stocks.

US job openings steady in May

US job openings were unchanged at 7.6 million in May, according to JOLTS data released on Tuesday, while hiring held at 5.2 million and total separations rose to 5.1 million from a revised 5.0 million in April. Quits were little changed at 3.1 million after a revised 3.0 million. The figures suggest the US labour market remained resilient in May, with signs of easing demand for workers but no sharp deterioration. On the consumer side, US consumer confidence edged up to 91.2 in June from a downwardly revised 90.6 in May. The Conference Board’s Present Situation Index fell to 116.4 from 119.4 points.

German inflation slows in June

Germany’s annual inflation rate eased to 2.3% in June from 2.6% in May, while consumer prices fell 0.3% from the previous month, provisional data released on Tuesday showed. Core inflation was unchanged at 2.5%, while services inflation remained at 3.1%. The moderation in headline inflation was driven largely by a further slowdown in energy price growth to 3.4% from 6.6% in May and 10.1% in April, while food inflation held at 0.4% and goods inflation cooled to 1.7%. European equities closed broadly higher on Tuesday. The Euro Stoxx 50 added 1.5%, while Germany’s DAX also rose 1.5% and France’s CAC 40 gained 0.4%.

Swiss KOF barometer rises above average

Switzerland’s KOF Economic Barometer rose to 101.2 in June from a revised 98.6 in May and 95.4 a year earlier, data released on Tuesday showed. The reading moved back above its long-term average after staying below that level in recent months, indicating a firmer near-term outlook for the Swiss economy. The improvement was driven mainly by manufacturing indicators, especially those tied to production, while gauges for foreign demand and private consumption also pointed to a more favourable backdrop. Switzerland’s Swiss Market Index was the outlier in European equities on Tuesday, slipping 0.2%.

Corporate and economic calendar

Corporate news in focus: There is no major corporate news scheduled today.

Economic data in focus: Manufacturing Purchasing Managers’ Indices from several of the world’s largest economies, including Switzerland (09:30), Italy (09:45), France (09:50), Germany (09:55), the euro area (10:00), the UK (10:30), the US (15:45), and US ISM (16:00); Swiss retail sales (08:30), euro-area Consumer Price Index (11:00), US ADP National Employment Report (14:15), European Central Bank President Christine Lagarde speaks (15:00 and 16:30), Federal Reserve Chair Kevin Warsh speaks (15:00).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.