• Wall Street equities ended mixed on June 6, with the DJI rose by +0.20%, the S&P 500 edged down by -0.02%, and the Nasdaq closed down by -0.09%.
• US stocks were little changed on Thursday, stocks cooled following a strong rally that pushed the Nasdaq to a new high on Wednesday. Tech stocks led the way, with Nvidia surpassing Apple to become the second-largest US company. However, on Thursday, Nvidia shares fell over 1%, reducing the AI chip giant's market cap below USD3tn.
• The 10-yr UST yields fell by -1.0 bps to 4.28%, while the 2-yr yields remained flat at 4.72%. Treasuries gained support on Thursday after weekly US jobless claims exceeded expectations and Q1 unit labor costs were unexpectedly revised lower, suggesting dovish Fed policy.
• US unemployment claims surprise with an upward tick. Initial claims rose by 8,000 to 229,000, exceeding analyst expectations of 220,000. This unexpected increase raises concerns about a potential weakening in the labor market.
• The US trade deficit widened to USD74.6bn in April from USD69.4bn in March, the biggest in 1.5 years, posing a negative impact on GDP.
• The ECB cut its interest rate by 25 bps to 4.25% Thursday, following similar actions by central banks in Canada, Sweden, and Switzerland. Additionally, the ECB revised its 2024 Eurozone GDP forecast upward to 0.9% from 0.6% and its 2024 inflation forecast, ex.food and energy, to 2.8% from 2.6%.
• Global bond yields were mixed on Thursday: the German bund yield rose by +3.7 bps to 2.54%, while the 10-yr UK gilt yield fell by -1.0 bps to 4.17%, and the Japanese 10-yr JGB yield declined by -5.3 bps to 0.96%.
