• Wall Street equities closed with varied results on Jun 3, with the DJI declined by -0.30%, the S&P 500 grew by +0.11%, and the Nasdaq rose by +0.56%.
• US stocks ended mixed on Monday, starting June's first trading day with volatility. The tech sector boosted the broader market, led by Nvidia's over 4% increase after revealing its new AI chips for 2025. The drop in bond yields also favored stocks, as the 10-year T-note yield fell to a two-week low.
• The 10-yr UST yields slipped by -10.0 bps to 4.41%, while the 2-yr yields decreased by -7.0 bps to 4.82%. T-notes rose after the May ISM manufacturing index fell more than expected, suggesting a dovish outlook for Fed policy. Additionally, a more than 3% drop in crude prices to a three-month low lowered inflation expectations, further boosting T-notes.
• The US ISM Manufacturing PMI unexpectedly edged lower to 48.7 in May-2024 from 49.2 in Apr-2024, falling below forecasts of 49.6. The May ISM price paid sub-index dropped by 3.9 points to 57.0, falling short of the expected 59.0.
• The HCOB Eurozone Manufacturing PMI climbed to 47.3 in May from 45.7 in April, slightly under the preliminary forecast of 47.4. The reading pointing to the slowest decline in Eurozone manufacturing in over a year.
• Meanwhile in Asia, the Caixin Manufacturing PMI for China in May rose by +0.3 to 51.7, stronger than expected at 51.6 and reaching the highest level in 23 months.
• Global bond yields moved lower on Monday the German bund yield fell by -8.4 bps to 2.58%, while the 10-yr UK gilt yield slid by -9.8 bps to 4.22%. The Japanese 10-yr JGB yield edged down by -0.1 bps to 1.07%.
