In US economic data, consumer confidence fell from 108.6 to 106.4 in May (survey: 103.9). The S&P/Case-Shiller home price rose from an annual growth rate of 20.3% in February to 21.2% in March (survey: 20%). The house price index rose 19% on the year to March after rising 19.3% in the year to February.

European sharemarkets were mixed on Tuesday. New data showed Eurozone inflation at a record high of 8.1% in May, boosting chances for bigger rate hikes in future months from the European Central Bank. Banks fell 1.6%. The pan-European STOXX 600 index fell by 0.7%. The German Dax index lost 1.3% but the UK FTSE index gained 0.1%. In London trade, shares in Rio Tinto rose by 0.3% while BHP shares fell by 1.2%.

US sharemarkets eased in volatile trade on Tuesday on endmonth trading activity. Energy stocks fell 1.2% on reports that some OPEC members want to suspend Russia’s participation in the production deal to allow other members to pump more crude. After being down 461 points at one stage, the Dow Jones index closed lower by 223 points or 0.7%. The S&P 500 index fell by 0.6%. And the Nasdaq index lost 50 points or 0.4%.

US treasuries fell on Tuesday (yields higher). Federal Reserve Governor Christopher Waller said the US central bank should be prepared to raise rates by a half percentage point at every meeting from now on until inflation is under control. US 10-year yields rose by around 11 points to near 2.86%. And US 2-year yields rose by 7 points to near 2.56%.

Major currencies were mixed against the US dollar in European and US trade. The Euro fell from highs near US$1.0745 to lows near US$1.0680 and was around US$1.0735 at the US close. The Aussie dollar eased from US71.97 cents to lows near US71.50 cents and was near US71.75 cents at the US close. And the Japanese yen eased from 127.65 yen per US dollar to JPY128.86 and was near JPY128.70 at the US close.

Global oil prices were mixed on Tuesday. The European Union agreed to cut 90% of oil from Russia (sanctions will be phased in) and China lifted some Covid restrictions. There were also reports that OPEC+ would suspend Russia’s participation in the production deal, allowing other members to lift output. The Brent crude price rose by US$1.17 or 1.0% to US$122.84 a barrel. But the more
actively-traded August contract fell by US$2.00 or 1.7% to US$115.60 a barrel. And the US Nymex crude price lost US40 cents or 0.3% to US$114.67 a barrel.

Base metal prices were mixed on Tuesday. Aluminium, nickel and copper fell by as much as 3.5%. Other metals rose by as much as 0.4%.

The gold futures price fell by US$8.90 or 0.5% to US$1,848.40 an ounce. Spot gold was trading near US$1,836 an ounce at the US close. The iron ore futures price rose by US$1.51 or 1.1% to US$135.02 a tonne. Ahead: In Australia, economic growth (GDP) data is released with home prices and purchasing manager indexes (PMIs). In the US, the JOLTS job openings report is due with ISM and S&P Global PMIs and construction spending.

Originally published by CommSec