Global markets displayed a mixed response to the latest US finance reports on Wednesday 19 June 2024. These yardsticks point to a sluggish, but not recessive, US economy.
Greenback And World Markets React To Lethargic US Economy
The Associated Press (AP) reported that the Dow Jones Industrial Average slipped by 0.1% compared to the S&P 500, which increased by 0.1%. US markets were closed on 19 June 2024 for the Juneteenth bank holiday.
European equities were down, with the FTSE 100 dipping by 0.2%. UK inflation rates are currently at the benchmark 2% level, and analysts believe that the Bank of England (BOE) will keep interest rates at 5.25% when it meets on Thursday 20 June 2024.
The DAX in Germany and the CAC 40 in France both dropped by 0.1% and 0.2% respectively. Australia’s S&P/ASX 200 also decreased by 0.1%.
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Eastern markets see-sawed between ups and downs. AP indicated that Tokyo’s Nikkei 225 Index rose by 0.2% following positive May 2024 trade trends. Japan’s exports recorded a month-over-month 13.5% and year-over-year 9.5% hike. Economists attribute this to the yen’s weaker performance against the greenback.
On Wednesday, the USD slid slightly from 157.87 to 157.76 JPY, while the EUR went down from $1.0738 to $1.0736. The yen’s feeble show may prompt the Bank of Japan (BoJ) to increase inflation even more.
Hong Kong’s Hang Seng jumped by 2.9%, while the Shanghai Composite dropped by 0.4%. On the US front, the S&P 500 rose by 0.3% to record its 31st consecutive record high this year.
