Markets Wrap: Asian Stocks Set for Steady Open After US Shrugs Off CPI

CPI in May lifted 0.6% to be up 5% a year ago. Core CPI rose 0.7%, to be 3.8% higher a year ago. Futures lifted in Hong Kong, and Japan but were steady in Australia. The CPI increase was broadly driven by the control over the pandemic and the reopening of the economy. The spike in long-term borrowing costs is viewed as temporary. Overnight, US equities climbed to another record. The S&P 500 rose by 0.5%. The Nasdaq and the Dow Jones lifted 0.8% and 0.1% respectively backed by a strong tech rally. 

US long-term treasuries yields plunged to the lowest since March. US 10-year yields fell by 5 points to 1.44%. US 2-year yields fell by 1 point to near 0.145%. 

Forex trading saw the dollar mixed against other major currencies. According to ZERO Markets’ Meta Trader 5 platform, the Euro fell from highs near $1.2191 to lows near $1.2143 against the dollar. The Aussie dollar rose from lows near $0.7621 to highs around $0.7763 against the dollar. 

Commodity trading saw global oil prices rose to the highest level in over 2 years upon rising sentiment for oil demand increase. Brent crude rose 0.4% to near $US 72.52 a barrel. WTI rose by o.5% to $70.25 a barrel.

Iron ore prices lifted by 1.6% to near $217 a tonne on elevated China steel output. Precious metals trading saw gold trading higher by 0.1% to near $US 1,898 an ounce.

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