Daily Digest: Monday 3rd June
USA
US equity performances were mixed with the Nasdaq 100 and S&P 500 both closing higher, while the Dow moved lower. The Nasdaq 100 ($NDX) led gains moving 64.33 points (0.35%) higher to 18,600.98, followed by the S&P 500 ($SPX) which gained 5.89 points (0.11%) moving to 5,283.40. Meanwhile, the Dow ($INDU) fell 115.29 points (0.30%) to 38,571.03.
Once again ‘meme-stocks’ returned to the headlines as shares in the entertainment franchise GameStop ($GME) rose 21% to $28. This move came as the infamous trader Keith Gill or more commonly known ‘Roaring Kitty’ made his supposed return to the social media platform Reddit with a post showing a sizeable multi-million dollar call option position on the firm. Once again this has drawn criticism across the financial sector as speculators and analysts alike question the ability of individuals to move markets utilising their social media presences, often promoting higher risk positioning.
Europe
The UK’s FTSE 100 (FTSE) moved lower through Monday, ending a two session winning streak despite manufacturing PMI figures signalling sector output growth through May. The FTSE traded 12.63 points (0.15%) lower at 8,262.75 with 31 index constituents closing down, while 67 closed higher and 3 were non-movers. UK PMI figures came in at 51.2, indicating strong production output growth in the UK during May with the month marking the strongest of only two months of sector output growth in over 12 months.
In terms of mainland European equity performances, the major equity indexes moved higher. The STOXX 600 (€SXXP) rose 1.68 points (0.32%) to 519.85, while the German DAX(€GDAXI) rose 110.22 points (0.60%) to 18,608.16, and the French CAC (€FCHI) rose 5.15 points (0.064%) to 7,998.02.
Rest of the World
Manufacturing PMI data for Japan came in this morning at 50.4 for May, indicating a steady expansion of manufacturing output across the nation during the month. This is the first time that manufacturing production has risen on a month-by-month basis since May 2023, suggesting a potential resurgence in manufacturing sector output and activity. Equity trader reactions to the print were overwhelmingly positive, and Japan’s benchmark index, the Nikkei 225 (¥N225) rose 435.13 points (1.13%) to 38,923.03. However, the true strength of a possible resurgence in production data can only be tested in July, whereby the June figures can be used to indicate the presence of a wider uptrend.
In terms of FX markets, the JPY managed to move slightly higher against the USD, with the pair trading at 156.049 as of 16:48 GMT, some 1.2 points higher than yesterday’s level at 157. This move comes as the currency remains in hot water after last weeks announcement that authorities had spent 9.8 trillion Yen enacting currency interventions to strengthen the Yen.
In China, the Shanghai Stock Exchange Composite Index (¥SSE) moved 8.32 points (0.27%) lower to 3,078.49, despite May’s manufacturing PMI figures coming in above expectations of 51.6 at 51.7. Meanwhile, the Indian Nifty 50 (₹NSEI) rose 733.2 points (3.25%) to 23,263.90 marking the indexes strongest performance in over a week, as traders moved to break last weeks downtrend which saw prices fall as low as 22,400.
Commodities
Following a weak session on Friday, Gold futures prices rose by 0.89% to $2,366.70 per ounce as of 21:00 GMT.
WTI crude experienced sharper price movements following the conclusion of the June OPEC+ meet. The meet indicated that current production cuts would continue toward the end of the year, a move which seemingly abandons triple figure oil price targets. As of 21:00 GMT, WTI prices were $74.02 per barrel, a 3.86% session decline.
What to Watch Tomorrow
US Earnings
CrowdStrike Holdings ($CRWD)
Sources:
https://uk.finance.yahoo.com/world-indices/
https://uk.finance.yahoo.com/commodities
https://www.londonstockexchange.com/indices/ftse-100
https://www.binance.com/en-GB/price/bitcoin
https://www.binance.com/en-GB/price/ethereum
https://qontigo.com/index/sxxp/
Stock Market Activity Today & Latest Stock Market Trends | Nasdaq
https://coinmarketcap.com/charts/#market-cap
https://www.forexfactory.com
Definitions:
YoY - Year on Year, or, Year over Year
MoM - Month on Month, or, Month over Month
QoQ - Quarter on Quarter, or, Quarter over Quarter
ECB - European Central Bank
BOJ - Bank of Japan
Fed - Federal Reserve
BOE - Bank of England
SNB - Swiss National Bank
DOJ - Department of Justice