• Wall Street equities closed with gains on Jun 4, with the DJI surged by +0.36%, the S&P 500 edged up by +0.15%, and the Nasdaq closed higher by +0.17%.
• US stocks recovered from early losses on Tuesday and posted moderate gains as bond yields tumbled following a larger-than-expected decline in US job openings for April. Energy stocks dragged on Tuesday's market rally as WTI crude prices plunged over 1%, hitting a 3-month low. The drop was fueled by concerns that OPEC+'s decision to reinstate production earlier than anticipated will lead to a global oil supply glut.
• The 10-yr UST yields sank by -8.0 bps to 4.33%, while the 2-yr yields dropped by -5.0 bps to 4.77%. The 10-yr yield declined to a two-week low June, signaling that the US economy's weakening resilience to higher interest rates is bolstering the case for multiple rate cuts this year.
• The number of US JOLTS job openings fell by -296,000 to 8.059 million in April, hitting a three-year low and undershooting the expected 8.350 million, signaling a weaker labor market.
• Meanwhile in Europe, the German unemployment increased by +25,000 in May, marking the largest rise in 7 months and suggesting a weaker labor market than the anticipated +7,000.
• In Asia, average cash earnings in Japan rose by 2.1% YoY in April 2024, marking an acceleration from a 0.6% increase in March and beating expectations for a 1.7% gain. This was the highest increase since June last year.
• Global bond yields declined on Tuesday: the German bund yield fell by -4.7 bps to 2.53%, while the 10-yr UK gilt yield decreased by -4.3 bps to 4.18%, and the Japanese 10-yr JGB yield dropped by -3.9 bps to 1.03%.
