- The S&P 500 fell, led by technology stocks; U.S. Treasuries reported lower
- European equities rose, while bonds performed mixed
- Asian equities lack a clear direction
Technology stocks retreated, dragging the S&P 500 downward
The U.S. S&P 500 closed lower on Thursday, led by technology stocks and retreated after recent gains. The S&P 500 fell 0.3%.
U.S. Treasuries reported lower (higher yields) due to the lack of a major catalyst; The resumption of the auction of the five-year Inflation-Protected Bond (TIPS) performed well. The yield on the 10-year Treasury rose 4 basis points to 4.26%.
European stock markets posted sizable gains on Thursday. The Dow Jones Europe 50 rose 1.3%, led by healthcare and financials. France's CAC and Germany's DAX rose 1.3% and 1.0%, respectively. Britain's FTSE 100 rose 0.8%.
On the eve of today's PMI release, European government bonds performed mixed. The German 10-year government bond yield edged up 3 basis points to 2.43%. The yield on 10-year French government bonds was little changed at 3.20% (up 1 basis point), supported by a positive bond auction. The yield on the 10-year government bond fell 1 basis point to 4.06% amid growing hopes that the Bank of England will cut interest rates in August.
Asian equities lacked clear direction on Thursday. Japan's Nikkei 225 rose 0.2% and South Korea's Kospi rose 0.4%, as electronics stocks extended their recent gains. China's stock market fell, with the Shanghai Composite Index falling 0.4%; Hong Kong's Hang Seng Index fell 0.5%, led by technology stocks. India's Sensex index closed 0.2% higher.
Oil prices rose on Thursday as government data showed U.S. oil inventories fell last week. U.S. oil prices rose 0.7% to $82.2 in July.
Key data announcements and market events
yesterday
The Bank of England kept policy unchanged as expected. Some MPC members said the decision not to cut rates was "very balanced", suggesting that a rate cut was still possible in August.
U.S. housing starts fell 5.5% (month-on-month) to 1.28 million units in May, the lowest level since June 2020.
The SNB cut its policy rate by 25 basis points to 1.25% as core inflationary pressures eased.
Economic data released today (21 June 2024)
The Eurozone Composite PMI is expected to rise from 52.2 in May to 52.5 in June, suggesting a gradual economic recovery.
The UK's Composite Purchasing Managers' Index may edge up to 53.1 in June, compared with 53 in May.
The US Composite PMI is forecast to fall to 53.5 in June from 54.5 in May.
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