Asia Morning Call-Global Markets saw stock index rallying to record highs on Wall Street and Europe following interest rate steadiness by the European Central Bank and easing likelihood in 2024 by the Federal Reserve Chair, Jerome Powell- if inflation behaved.
MSCI’s gauge of stocks throughout the globe increased 7.76 points, translating to 1.01%, reaching 773.64.
Major stock indices in New York experienced significant growth, with S&P 500 and Nasdaq both attaining intraday record highs.
This was due to growth stock support alongside investor’s optimism regarding the Federal Reserve’s potential rate cuts.
Consequently, Dow Jones Industrial Average rose 135.11 points which translates to 0.35%, reaching a high of 38,796.75.
During the same period, the S&P 500 gained 54.88 points (1.08%), resulting in 5,159.64 while the Nasdaq Composite had 263.68 points growth (1.64%), reaching 16,295.22.
On the other hand, Europe’s principal index rose significantly following the European Central Bank’s decision to hold the rate steady following signs of cooling inflation.
European markets also experienced a boost from Novo Nordisk that scored a record peak following a positive trial data of its experimental obesity drug.
In this light, the STOXX 600 hit an all-time high as it closed 1.1% higher.
Despite the Nikkei in Japan slipping from its record high as a result of selling off chip-related stocks amid the rising yen, Australian shares are preparing for a rise as hopes of stimulation from China, the leading consumer, could result in propelling domestic miners higher.
Gold broke its record high after the United States was preparing for monetary easing.
At the close of 02:00 p.m.
ET (1900 GMT), the price of Spot Gold rose by 0.4% at $2,156.93 per ounce, hitting a record high of $2,164.09 during the Asian trading hours.
The U.S.
Gold futures were 0.2% higher at $2,165.2.
Iron ore futures also rose after comments from officials in China sparked hopes for more stimulus measures.
Subsequently, the May iron ore contract on China’s Dalian Commodity Exchange ended by 1.83% higher at 890 yuan ($123.64) per metric ton.
Following better than expected trade data from China, copper prices touched their highest in five weeks while zinc also came up due to a cut in output at a major South Korean smelter.
On the front of oil prices, there were little changes as markets determined the effect of new economic data from China against the increasing supply from the Western Hemisphere.
Brent crude futures were settled flat at $82.96 for every barrel.
In the derivative exchange of Bursa Malaysia, The benchmark palm oil contract for May delivery was down 10 ringgit translating into 0.25%, reaching 4,071 ringgit i.e., $865.80 per metric ton at closing, hitting a two-day low.
Rubber futures in Japan rose for the third consecutive session following big pay hikes secured by labour unions in the country.
Despite this, the stronger yen capped gains.
On the Osaka Exchange, the rubber contract for August delivery was up by 0.1 yen that translates to 0.03%.
The contract closed at 300 yen, $2.02 per kg.