Asia Mixed, Europe Market Advances While Gold Retreats From Record Highs - Global Market Update While US Slept
Portfolio Pulse from Akanksha Bakshi
U.S. stock markets closed lower due to disappointing inflation data and prolonged disinflation expectations. U.S. existing home sales declined by 1.9% in April. The Fed minutes revealed concerns about persistent inflation and potential further policy tightening. Most S&P 500 sectors fell, with utilities, energy, and materials suffering the most. In Asia, Japan's Nikkei 225 gained, while Australia's S&P/ASX 200 and China's Shanghai Composite fell. European markets saw modest gains. Commodities saw mixed movements, with gold retreating from record highs.
May 23, 2024 | 10:33 am
News sentiment analysis
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NEGATIVE IMPACT
Gold prices retreated by 1.11% from record highs due to high-interest rate concerns and profit-taking in industrial metals.
Gold's decline is attributed to concerns over high-interest rates, which typically reduce the appeal of non-yielding assets like gold.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
The S&P 500 declined by 0.27% due to disappointing inflation data and prolonged disinflation expectations. Most sectors, especially utilities, energy, and materials, suffered losses.
The decline in the S&P 500 is directly tied to investor concerns over inflation and the potential for prolonged disinflation, as well as the Fed's outlook on high interest rates.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Natural Gas prices declined by 1.16% to $2.808 amid mixed movements in the commodities market.
The decline in natural gas prices is part of broader mixed movements in the commodities market, influenced by various factors including supply and demand dynamics.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Crude Oil WTI prices rose by 0.67% to $78.09/bbl, and Brent was up 0.70% to $82.47/bbl, indicating a positive movement in the oil market.
The rise in crude oil prices reflects positive sentiment in the oil market, likely driven by supply constraints or increased demand.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70