DAILY MARKET REPORT

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EQUITIES

Stocks fell for a second day on Wednesday, pressured by declines in tech and bank shares, pausing a sharp rally to start off June.

Facebook shares dropped 1.7% after a Wall Street Journal report showed the company uncovered emails linking CEO Mark Zuckerberg

Still, the major indexes were all up more than 4% for the month, rebounding from a sharp sell-off in May amid improvements in U.S.-Mexico trade worries and expectations for looser monetary policy

Market focus remained largely attuned to global trade developments on Wednesday, after President Donald Trump said Tuesday that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agreed on as many as five “major points.” Trump did not specify these trade issues.

FOREX

The dollar held its gains early on Thursday after rebounding from 11-week lows, as peers such as the euro, pound and commodity currencies sagged due to troubles of their own.

Weakness in other currencies, however, underpinned the dollar’s latest bounce despite mounting expectations that the Fed could ease monetary policy in the next few months.

The euro took a hit after U.S. President Donald Trump said on Wednesday he was considering sanctions over Russia’s Nord Stream 2 natural gas pipeline project and warned Germany against being dependent on Russia for energy.

Sterling slipped as British lawmakers on Wednesday defeated an attempt led by the opposition Labour Party to try to block a no-deal Brexit.

Data released on Wednesday showed U.S. consumer prices barely rose in May, pointing to moderate inflation that together with a slowing economy increased pressure on the Fed to lower interest rates this year.

The dollar was also buoyed as commodity-linked currencies were pressured by a slump in crude oil prices.

COMMODITIES

Gold prices gained momentum on Wednesday as the dollar dipped on speculation the U.S. central bank would cut interest rates this year amid concerns about waning global economic growth.

Global equities snapped a seven-day winning streak after U.S. President Donald Trump said he had no interest in moving ahead with a trade deal with China unless Beijing agreed to four or five “major points.”

Oil prices steadied on Thursday, after slumping as much as 4% in the previous session to nearly five-month lows on the back of a further buildup in U.S. crude stockpiles and worries about lower demand growth.

Source-CNBC/INVESTING.COM

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