News summary
The three major U.S. stock indexes rose slightlyvideopokertouchscreen, the Nasdaq index hit a record high; U.S. bond yields fell collectively, and inflationary pressures hit U.S. households; the IMF expects a soft landing for the British economy, and the European Central Bank is expected to cut interest rates in June; the precious metals market is over-active in the short term, with Shanghai, gold and silver supports at 572 and 8200 respectively.
Newsletter text
The three major U.S. stock indexes increased slightly, with the Dow rising 0.0%videopokertouchscreen.17%。The S & P 500 index and the Nasdaq index achieved increases of 0.25% and 0.22% respectively, continuing to set new historical highs.
U.S. bond yields generally fell, with two-year U.S. bond yields falling 1.9 basis points, and 10-year and 30-year U.S. bond yields falling 3.3 and 3.4 basis points respectively.
At the end of trading in New York, the US dollar index rose slightly by 0.03%. Non-US currencies performed differently. The euro fell 0.03% against the US dollar, while the offshore RMB rose slightly by 3 basis points against the US dollar.
The Federal Reserve's report revealed that inflation has caused more than 60% of American households to experience financial crises, which continues to put a heavy burden on American people's lives.
U.S. Treasury Secretary Yellen warned of the need to be vigilant about high corporate debt, high leverage ratios and misallocation of liquidity, as well as pressures on commercial real estate.
Federal Reserve Governor Waller stressed that there is a need to observe months of good inflation data before considering interest rate cuts, although recent indicators suggest that interest rate cuts may be back on the agenda and further interest rates may no longer be necessary.
The International Monetary Fund (IMF) predicts that the UK economy is expected to achieve a "soft landing" and raises its forecast for UK GDP growth in 2024 to 0.7%. The Bank of England is expected to cut interest rates in the next few years.
European Central Bank President Christine Lagarde expressed confidence that the European Central Bank has controlled inflation momentum. If the inflation path remains unchanged, there is a high possibility of a rate cut in June.
Japanese Finance Minister Shunichi Suzuki expressed concern about the negative impact of a weakening yen exchange rate, while also concerned about the rise in long-term interest rates and changes in government bond yields, and expected wage growth to exceed inflation.
The CBI's industrial orders index fell significantly in May, and the difference in price expectations fell to a low point.
South Korea's exports increased in the first 20 days of May, with chip exports particularly strong and its trade deficit decreasing.
The central bank of Hungary decided to reduce the benchmark interest rate by 50 basis points from 7.75% to 7.25%.
The prices of precious metals, gold and silver have experienced fluctuations, with short-term upward momentum weakening but maintaining a rising structure. The price of U.S. gold is at US$2400/ounce, and there is short-term support for U.S. silver approaching US$31. The negative impact of the Federal Reserve's monetary policy has decreased, but the positive impact is still limited. The warmer macro environment has pushed up commodity prices and has a positive impact on precious metal prices, among which silver performs strongly. However, investors should pay attention to short-term volatility.
Conclusion: The short-term precious metals market is biased towards bulls, but investors need to be cautious when chasing highs. The short-term support for the main contract of Shanghai Gold is at 572, and the short-term support for the main contract of Shanghai Bank is at 8200.