US inflation remains warm after job market cools

Asia: Major Asian markets were mostly lower on Monday as investors awaited key economic data from the US and China this week.

Decisions by central banks in South Korea, New Zealand and Malaysia are also due this week, although no changes are expected, according to a Reuters poll of economists.

Japan fell 0.32% to close at 40,780.70 points. The losses came after Japan’s real wages fell for the 26th consecutive month. Data from the country’s Ministry of Health, Labor and Welfare showed real wages fell 1.4% year-on-year in May, although nominal wages rose 1.9% to 297,151 ($1,850). May’s reading was the fastest wage increase in 11 months.

South Korea closed down 0.16% at 2,857.76 points. Electronics heavyweight Samsung ( KS: ) shares rose 0.34%, but the biggest union is scheduled to begin a three-day strike on Monday. The Samsung Electronics National Union, which has about 28,000 members, has called for an overhaul of its performance-based bonus system and an extra day of annual leave for workers, Reuters reported.

Hong Kong’s index fell 1.65% to 17,505.89 points, while in mainland China, the CSI300, which includes shares of Shanghai and 0.85% of the biggest blue chips, fell 0.85% to close at 3,401.76 points, marking a fifth straight day of losses. Low volume since February.

Australia fell 0.76% to close at 7,763.20 points as mining and energy shares dragged down the index. Out of 11 sectors, only two sectors rose. Shares in miners Fortescue, Rio Tinto ( LON: ) and BHP fell 2.6%, 2.4% and 2.1% respectively after prices fell 3% in Singapore over the weekend. Arcadium Lithium shares fell 4.5%, Strike Energy shares fell 4.4% and IGO shares fell 3.9%. Producers Santos and Woodside Energy fell 2.2% and 1.8%, respectively.

Europe: European stock markets are higher this Monday.

French stocks rose on Monday as investors reacted to the left’s surprise victory in the country’s parliamentary elections. France’s left-wing New People’s Front won more seats in parliamentary elections this weekend, preventing an expected surge for the far-right. However, the coalition could not secure an absolute majority, according to the findings, leaving markets digesting the possibility of a suspended parliament. O erased losses and rose 0.5% at midnight.

The opposition Labor Party won a landslide victory in Britain’s general election last week, ousting the Conservatives after 14 years. In London it rose 0.3%. Among mining companies listed on the LSE, Anglo American ( JO: ) fell 1.4%, Anglo American fell 0.9%, while giants BHP and Rio Tinto lost 1.5% and 1.2% respectively. Oil major BP fell 1.2%.

German 30 rises 0.5%.

USA: U.S. stock index futures traded slightly below the opening line on Monday morning as investors awaited key inflation data.

Profits from some large financial institutions and consumer companies are also on the agenda. Citigroup (NYSE: ) and JPMorgan (NYSE: ) Chase will kick off second-quarter earnings season this week. PepsiCo (NASDAQ: ) and Delta Air Lines (NYSE: ) are also set to report their results.

Stock markets are coming off a strong week, as the composite hit an all-time high and closed at record highs on Friday, while the broader market index posted its 34th record high in 2024. The S&P 500 rose 0.54% to close at 5,567.19. , the Nasdaq advanced 0.90% to 18,351.34, while shares of Tesla (NASDAQ: ) and Nvidia (NASDAQ: ) rose. It added 0.17% and ended the week in the green at 39,375.87 points.

The S&P 500 is up about 16.7% this year. The benchmark index posted its fourth positive week in the past five, with an improving inflation outlook and any weakness in the economy later this year that could lead to an interest rate cut by the government.

Data released Friday showed nonfarm payrolls rose by 206,000 in June, beating the Dow Jones estimate of 200,000. The June jobs report also showed that the unemployment rate unexpectedly rose to 4.1% instead of holding steady at 4% as expected.

The data comes at a time of uncertainty about when interest rate cuts will begin. Minutes from the central bank’s latest meeting, released last week, show policymakers are looking for more evidence that inflation is easing before deciding to move rates.

The June consumer price index is expected to be released on Thursday and could provide clues as to when the first rate cut might come, depending on the return of inflation to the producer price index, which tracks total inflation, to be released on Friday and when Federal Reserve Chairman Jerome Powell will testify before Congress on expectations for the economy and monetary policy. expected.

Traders currently expect two interest rate cuts in 2024, according to the CME FedWatch tool.

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Futures Indices – 7:20 am:
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Observation: This material is the result of voluntary, independent work, compilation of data published on various websites and is summarized here in an artificial manner to facilitate and speed up the reader’s understanding. The text of the Asian session is in the past tense, while the European and American ones are in the present tense due to the time this report was written. Pay attention to when data is available. The text is not an indication of the purchase, maintenance or sale of property.