Central bank moves in Tokyo and Sydney set the tone for trading. Investors await press conferences and data that could trigger further rate bets.
A look at what awaits European and global markets today, prepared by Tom Westbrook.
Asian central banks acted as expected: Japan raised the short-term rate to 1%, the highest level since 1995, while Australia left rates at 4.35%.
At the start of trade, the yen and the Australian dollar did not show significant moves.
Key themes of the day and expectations
In focus are press conferences in Sydney and Tokyo, where investors expect a roughly hawkish stance on monetary policy – given the likelihood of further hikes in Japan this year and about a 65% chance of the next hike in Australia.
In monetary policy: Michele Bullock of the Reserve Bank of Australia will speak at 0530 GMT, and an hour later Bank of Japan Deputy Governor Shinichi Uchida will take over for the hospitalized Kazuo Ueda.
Japan will cut the pace of its bond purchases by about 200 billion yen per quarter through April 2027, after which the pace is expected to stabilize at around 2 trillion yen per month.
In other market segments, traders are avoiding substantial moves amid the backdrop of possible peace between the United States and Iran. Oil prices stay above $80 a barrel; details of the deal remain hazy, and shipments through the Strait of Hormuz will take weeks to restore confidence in routes.
SoftBank shares remained steady after reports that the chief financial officer of Vision Fund is leaving the company.
In May, data from China were mixed: retail sales fell for the first time in more than three years, weighing on market sentiment, and indices in Hong Kong fell.
Overnight, Wall Street rose: after the close, SpaceX’s market value surpassed $2.6 trillion as shares rallied about 48% from the price level.
Nvidia issued bonds totaling $25 billion, saying the funds would go toward refinancing and other needs; the market also reacted to large bond issuances by other companies, adding momentum to financial markets.
Key events that could influence trading on Tuesday: the economy – ZEW survey in Germany.
Dollar to yen: 1 US dollar = 160.0700 yen.