China’s services and manufacturing PMIs rebounded to expansion zone in June
Wall Street stocks finished mixed overnight, with travel stocks being among the worst performers during the session. The Dow Jones Industrial Average finished up 0.27%, the S&P 500 slipped 0.07%, and the tech-heavy Nasdaq Composite slipped 0.03%. In individual stocks, Meta Platforms gained 2%, while Apple added more than 1%. Amazon jumped 1.42%, cheering the news that JPMorgan reiterated its overweight rating on the stock.
Following suit, Asian equities struggled for direction on Thursday as investors digested comments from major central bank governors, with monetary authorities warning that inflation could be long-lasting. Adding to recession worries, Fed’s Loretta Mester said the bank should act forcefully to curb price pressures. On the data front, China’s services and manufacturing PMIs rebounded to expansion zone in June for the first time in four months. China’s Shanghai Composite gained 1.10%, Hong Kong’s Hang Seng fell 0.44%, and the Nikkei 225 in Japan lost 1.54%.
In Europe, stocks opened lower today as softer tones intensified, with month-end and quarter-end flows in focus. London’s FTSE 100 plunged 1.65% in early deals while Germany’s DAX 30 fell nearly 2% on persistent fears that elevated inflation will force central banks to tighten policy more aggressively in the coming months. On the data front, Germany’s unemployment rate rose to 5.3% versus 5.0% expected.
In currencies, the dollar has settled around the 105.00 figure following a two-day rally, staying resilient as safe-haven flows returned, with focus shifting to the US PCE data, the Fed’s preferred gauge of inflation, due later today. Against this backdrop, EURUSD fell back below 1.0500 and extended losses to the 1.0445 zone early on Thursday, threatening fresh local lows around 1.0400 that could be derailed if the greenback extends the ascent in the near term.
