Categories
Market Updates

Markets Today 17th June 2022

MARKET WRAP – 17th June 2022

  • The American dollar spelt trouble in the last trading session of the day, undermined by plummeting government bond yields. Wall Street collapsed to fresh YTD lows, but AUD/USD retains gains and changes hands at around 0.7060.  A boost in commodity prices provided strong support to AUD despite the risk off sentiment in the equities market.

 

  • The S&P 500 fell 123.22 points, or 3.3%, to 3666.77.  The Dow industrials dropped 741.46 points, or 2.4%, to 29927.07.  Both indexes ended at their lowest closing levels since December 2020 .

 

  • The German 5-year yield jumped 20bps, set for biggest gain since 2011.  US short bonds extended their slide, with 2-year yield rising 15bps to 3.34%. Russia’s chief negotiator said Russia is ready for peace talks with Ukraine but has yet to receive a response to its proposals from Kyiv.

 

  • The US 10-year yield plunged 16.4 basis points to 3.23% after touching its highest level in over a decade Tuesday earlier this week.

 

  • At 8:30 am ET, data showed US housing starts fell to a 1.549 million annual rate in May from April’s 1.81 million, well below estimates for 1.693 million; while permits fell to 1.695 million from 1.823 million previous, below the 1.778 million rate expected.

 

FX

  • US Dollar Index (DXY) reversed the post-Fed losses during early Thursday morning in Europe.  However, after abysmal US Data was released DXY pulled back and traded to a fresh low of 103.80.

 

  • EUR/USD trades around 1.0570, helped by dismal US data and weaker government bond yields. The US Dollar Index stands at around 103.50, showing that the pair’s rally is fueled by the dollar sell-off.

 

  • GBP/USD has continued to push higher and climbed to a six-day high above 1.2300 in the second half of the day on Thursday. The Bank of England’s (BOE) hawkish tone and the renewed dollar weakness after mixed data provide a boost to the pair on Thursday.
  • USD/JPY picks up bids to refresh intraday high around 134.60 as yields fade the Fed-inspired weakness during early Thursday. The Yen’s latest gains could also be linked to the comments from Japanese Chief Cabinet Secretary Hirokazu Matsuno
    TODAY’S KEY RISK EVENTS
  • Bank of Japan’s interest rate decision at 1pm will be in focus as well as the commentary from Fed Chair Jerome Powell at US market open.  Dovish commentary from Powell could move markets and AUD even higher.

 

 

                                                                                                          

CURRENCY/INDICIES RANGES

Currency Pair Low High
AUD/USD 0.6943 0.7069
EUR/USD 1.0381 1.0601
GBP/USD 1.2042 1.2405
USD/JPY 131.49 134.68
NZD/USD 0.6233 0.6396
USD/CAD 1.28625 1.297
USD/CNH 6.6705 6.7284
AUD/JPY 91.93 94.53
AUD/NZD 1.1041 1.1166
DXY 103.418 105.493

 

Equity Index Daily % Change Closing Level
ASX -0.2% 6591
SHANGHAI COMP -0.6% 3285
NIKKEI 0.4% 26431
FTSE -3.1% 7045
DAX -3.3% 13038
CAC -2.4% 5886
DOW JONES -2.4% 29927
S&P 500 -3.3% 3667
NASDAQ -4.1% 10646
VIX 11.2% 32.95
 
     
Commodity Daily % Change Closing Level
CRUDE OIL 1.6% 117.1
ICE NAT GAS -9.4% 233.6
GOLD 0.3% 1856.7
SILVER 0.3% 22.0
SGX IRON ORE -3.1% 124.0
CMX COPPER -1.5% 412.2
ICE SUGAR 0.5% 18.7
ICE COTTON 1.1% 233.6
CBT WHEAT 2.7% 1091.8
BITCOIN -2.4% 20637.3
 
     
Rates Markets Yield Daily Change
US 2 YEAR 3.09% -10.3
US 10 YEAR 3.18% -10.7
AUST 2 YEAR 3.18% -13.0
AUST 10 YEAR 3.99% -20.8

Source – Bloomberg

   

Want to change how you receive these emails?
You can unsubscribe via Email

Disclaimer: This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711. The material contains general commentary only and does not constitute investment or any other advice. Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors. This information has been prepared without considering your objectives, financial situation or needs. Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith. Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract. This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change. Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

 

Kind regards,

Patrick Satorie

Corporate Account Manager

 

Level 12, 385 Bourke Street, Melbourne, VIC, 3000.

Office: +61 (3) 9063 0274

Mobile: +61 (0) 431 573 328

Email: psatorie@navigategp.com.au

Web: www.navigategp.com.au

 

ACN: 615 699 888 | AFSL: 502711

Disclaimer: The information contained in this email may provide general information. It does not have any regard to the financial situation or needs of any recipient(s) and must not be relied upon as financial product advice to any degree. You should consider seeking independent financial advice before making any decision based on this information. The information in this email and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of it being sent but no representation or warranty, either expressed or implied, is made or provided as to the accuracy, reliability or completeness of any statement made in this email.

The content of this email is confidential and intended for the recipient(s) specified in the message only. It is strictly forbidden to share any part or all of this message with any third party, without a written consent of the sender. If you received this message by mistake, please reply to this message and follow with its deletion, so that we can ensure only appropriate recipients receive our communications.

 

Disclaimer:This material is provided by Navigate Global Payments (Navigate) ACN 615 699 888, AFSL 502711.  The material contains general commentary only and does not constitute investment or any other advice.  Certain types of transactions, like futures, options and high yield securities can be risky, and not suitable for all investors.  This information has been prepared without considering your objectives, financial situation or needs.  Please seek your own independent legal or financial advice before proceeding with any investment decision. The information is believed to be accurate at the time of compilation and is provided in good faith.  Navigate does not warrant the accuracy or completeness of any information contributed by a third party. The information is subject to change without notice and Navigate is under no obligation to update the information. The information contained in this material are opinions of the author at the time of writing and does not constitute an offer, recommendation to act, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract.  This information, including any assumptions and conclusions is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change.  Past performance is not a reliable indicator of future performance. Any forecasts given in this material are predictive in character.

Leave a Reply

Your email address will not be published.