Asian shares soft as Chinese economic news looms, Euro pressure from French elections
From Business Standard: 2024-06-16 21:50:11
Asian share markets were softer on Monday ahead of Chinese economic news as political uncertainty in Europe soured risk appetites. China’s retail sales are expected to pick up to 3.0% in May, with industrial output slowing to 6.0%. The People’s Bank of China may cut lending rate by 10 basis points. S&P 500 futures were flat. Goldman Sachs raised their S&P 500 year-end target.|Gold held at $2,326 an ounce. Oil prices eased after a 4% rally last week. Brent dipped to $82.45 a barrel, while US crude fell to $78.28 per barrel. French markets endured a brutal sell-off ahead of a snap election, driving the euro to a four-month trough at 0.9505 francs on Friday. Central banks in Australia, Norway, and the UK expected to hold rates steady this week. SNB might ease given the recent strength of the Swiss franc.|European Central Bank policymakers have no plans to launch emergency purchases of French bonds. French election risks have implications for fiscal arrangements in the euro zone. The euro remained at $1.0706 after touching a six-week low of $1.06678 last week. Dollar was firmer on the yen at 157.54. BOJ announced tapering bond buying later than expected, impacting forex market. Main US data this week includes retail sales for May on Tuesday. Fed policy makers to address market’s wagers for rate cuts. Fed futures price in 76% chance of a cut as early as September. US markets to have a holiday on Wednesday. Analysts at JPMorgan warned of far-reaching implications of French challenges to fiscal arrangements in the euro zone. Eurozone stability at risk amidst French election uncertainty._muted”>Click here to connect with us on WhatsApp
|Japan’s Nikkei slipped 1.7%. MSCI’s Asia-Pacific index slightly softer. Analysts at Goldman Sachs raised S&P 500 year-end target to 5,600. Nasdaq futures edged up 0.1%. Fed futures price in 50 basis points of easing for the year. Retail sales data awaited for insights on US economy. SNB might ease given Swiss franc strength. Fed policy makers to speak this week. French election risks weigh on eurozone markets. Ensure clarity and engagement.
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