In US economic data, job openings, as measured by the JOLTs survey, fell from 11.681 million to 11.254 million in May (survey: 11m). The ISM services index fell from 55.9 to 55.3 in June (survey 54.3). The S&P Global services index fell from 53.4 to 52.7 in June (survey 51.6).
According to minutes of the last Federal Reserve meeting,participants judged an increase of 50 or 75 basis points would likely be appropriate at the July policy meeting. Participants judged there was a significant risk higher inflation could become entrenched if the public questioned the Fed’s resolve.
European sharemarkets were firmer on Wednesday after Norwegian oil workers ended their strike, easing supply concerns. Shares in Just Eat Takeaway.com rose by 15.5% after Amazon agreed to buy a stake in its Grubhub business. While sharemarket gains were generally broad-based, the energy sector fell by 1.5%. The pan-European STOXX 600 index rose by 1.7%. The German Dax index rose by 1.6% and the UK FTSE index rose by 1.2%. In London trade, shares of Rio Tinto rose by 1.0% but shares in BHP fell by 0.4%.
US sharemarkets were firmer on Wednesday as investors became more confident about the Fed’s inflation-fighting resolve. Shares in Rivian Automotive rose 10.4% after the electric vehicle maker confirmed production guidance. The Dow Jones index rose by 70 points or 0.2%. The S&P 500 index rose by 0.4% and the Nasdaq index was up by 40 points or 0.4%.
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US treasuries fell on Wednesday (yields higher). US 10-year yields rose by around 12 points to near 2.93% and US 2-year yields rose by around 16 points to near 2.97%.
Major currencies were weaker against the US dollar in European and US trade. The Euro fell from highs near US$1.0270 to US$1.0160 and was near US$1.0180 at the US close. The Aussie dollar fell from near US68.25 cents to near US67.60 cents and was near US67.80 cents at the US close. And the Japanese eased from 135 yen per US dollar to near JPY136 and was around JPY135.85 at the US close.
Global oil prices fell by 1-2% on Wednesday on continued worries about a global economic slowdown that could serve to reduce oil demand. The Brent crude price fell by US$2.08 or 2.0% to US$100.69 a barrel. And the US Nymex crude price fell by US97 cents or 1.0% to US$98.53 a barrel.
Base metal prices were mixed on Wednesday. Aluminium, lead and zinc rose by as much as 1.3%. Other metals fell by as much as 5.1% (tin).
The gold futures price fell by US$27.40 or 1.6% to US$1,736.50 an ounce. Spot gold was trading near US$1,739 an ounce at the US close. The iron ore futures price fell by US$1.09 or 1.0% to US$112.33 a tonne.
Ahead: In Australia, international trade data is released with the weekly payroll jobs and wages report. In the US, the ADP employment report is released with Challenger job cuts, weekly jobless claims and the trade deficit data.
Originally Published by CommSec