Markets Overview: Wednesday 30th June 2021

Commodity prices traded steady on Wednesday, after trading under pressure in the previous session. On Tuesday, most of the commodities in the non-agro segment ended in the red for the day while crude oil prices managed to end in green. Bullion and base metals prices witnessed selling on a stronger dollar over Fed tapering concerns. The dollar index rallied by 0.18 per cent above the 92-mark for the day.

Stock prices in London are seen opening marginally higher on Wednesday following slight gains on Wall Street overnight, as investors were buoyed by optimism over a strong economic recovery despite fears over rising virus cases around the world.

Vaccine optimism helped US stocks end higher on Tuesday after Moderna said its jab produced protection against the Delta strain that has spread rapidly around the world and accounts for an increasing number of new infections.

The Dow Jones Industrial Average and S&P 500 closed marginally higher. The Nasdaq Composite finished up 0.2%. The S&P and Nasdaq Composite once again ended at record-setting levels.

The Japanese Nikkei 225 index was up 0.1% on Wednesday. In China, the Shanghai Composite was up 0.6%, while the Hang Seng index in Hong Kong was down 0.1%. The S&P/ASX 200 in Sydney closed up 0.5%.

Chinese factory activity stabilised in June, data showed Wednesday, but output was hit by supply shortages of key commodities and microchips as well as the coronavirus-induced closure of a key port that caused huge delivery delays.

The official purchasing managers’ index, a key gauge of manufacturing activity in the world’s second-largest economy, came in at 50.9 in June from May’s 51.0, the National Bureau of Statistics said.

While the reading has been edging down for three straight months, it appears to be levelling out. It was also broadly in line with forecasts and continued to stay above the 50-point mark that separates growth from expansion.

The pound was quoted at USD1.3852 early Wednesday in London, up from USD1.3840 at the London equities close Tuesday

The euro stood at USD1.1903, marginally lower from USD1.1908. Against the yen, the dollar was trading at JPY110.50, flat from JPY110.48.

Brent oil was quoted at USD75.07 a barrel on Wednesday morning, slightly lower from USD75.11 at the London equities close Tuesday. Gold was priced at USD1,758.32 an ounce, down from USD1,760.21.

Trading Events of the Day

The international high-impact economic events calendar on Wednesday 30^th June 2021 is as below. Please note times are GMT+3.

12.00 – Europe – CPI Flash Estimate y/y

Potential instruments to Trade: EUR Crosses. 

15.15 – US – ADP Non-Farm Employment Change

Potential instruments to Trade: USD Crosses. 

15.30 – Canada – GDP m/m, IPPI m/m, RMPI m/m

Potential instruments to Trade: CAD Crosses.

16.45 – US – Chicago PMI

Potential instruments to Trade: USD Crosses.

17.00 – US – Pending Home Sales m/m

Potential instruments to Trade: USD Crosses.

17.30 – US – Crude Oil Inventories

Potential instruments to Trade: USD & CAD Crosses.

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