• Wall Street equities ended mixed on June 20, with the DJIA rose by +0.77%, the S&P 500 slid by -0.25% and the Nasdaq closed down by -0.79%.
• US stocks moved higher Thursday, with the S&P 500 and the Nasdaq setting new records thanks to strong chip stocks. However, a -5% decline in Qualcomm led to a sell-off in chip stocks, affecting the broader market. Additionally, weak US economic reports also supported stocks, fueling hopes for Fed rate cuts later this year.
• The 10-yr UST yields rose by +3.0 bps to 4.25% and the 2-yr yields edged up by +1.0 bps to 4.70%. Hawkish comments from Fed's Kashkari on Thursday, predicting 2% inflation in 1-2 years, pressured T-notes. However, prices rebounded later due to dovish US economic news.
• The US initial unemployment claims dipped -5,000 below expectations to 238,000 in the latest week. This decrease suggests a potentially weaker labor market than previously anticipated.
• The US housing starts in May fell unexpectedly by -5.5% MoM to a 4-year low of 1.27 million, weaker than expectations of 1.37 million. Building permits also dropped by -3.8% MoM to 1.38 million, falling short of expectations 1.45 million.
• In Europe, the SNB cut its key policy rate by 25 bps to 1.25% in June 2024, meeting market expectations. The decision mirrors a similar rate cut in March, reinforcing the SNB's role as a leader in the global policy easing cycle.
• Meanwhile, the BOE held the bank rate at 5.25% on Thursday, with seven officials voting to maintain and two for a cut. The "finely balanced" decision suggests a potential rate cut ahead.
• Global bond yields were mixed on Thursday: the 10-yr German bund yield grew by +2.7 bps to 2.43%, the 10-yr UK gilt yield eased by -1.0 bps to 4.05%, and the Japanese 10-yr JGB yield closed up by +2.6 bps to 0.96%.
