The U.S. ISM manufacturing index accelerated in May, but order backlogs were at record highs and employment indexes were weak, highlighting shortages in raw materials and labor supply. U.S. stocks opened lower on the first trading day of June, supported by higher energy stocks, but both the S&P and Nasdaq turned lower mid-session under pressure from health care and several blue-chip technology stocks leading the decline.
Small-cap stocks repeated the trend of outperforming the broader market last Wednesday and Thursday. Three retail holdouts that dived and turned lower mid-day last session on Friday rallied big, including AMC Theatres, which at one point rose more than 28% after the division announced the sale of more than 8 million shares to media mogul Murdoch’s investment firm to raise $230.5 million, and GameStop (GME) and Express, which both rose more than 10%. A number of popular Chinese stocks outperformed the broader market, with shares of two brokerages, Fudao and Tiger, which recently revealed their applications for overseas licenses to trade cryptocurrencies, surging, up nearly 7% and more than 8%, respectively, in the session; Azera and Xiaopeng, which announced a year-over-year surge in May deliveries, rose nearly 10% and 8%, respectively, in the session.
In the oil-producing countries are expected to increase demand and Saudi Arabia is cautious about increasing production situation, international crude oil futures rose high, the first time in two years the oil rose above $ 70. OPEC + meeting on Tuesday decided to implement the July production plan as scheduled, showing that they have confidence in the global demand increase and supply surplus easing; Saudi Arabia’s energy minister said there are clear signs of improvement in the demand side, but he is skeptical about the expectation of a big increase in oil demand in the next few months. Skeptical, said “seeing is believing”, want to see more from customer reaction, rather than demand forecasts. Some analysts say that even if OPEC+ scales back production cuts month by month, the growth in demand is outpacing the growth in supply.
U.S. economic data was generally positive and the dollar index sank to the more than four-month trough hit last week, but U.S. bond yields moved higher and gold futures, which set a new nearly five-month high during the session, have since turned lower and failed to close higher. All other precious metals, including silver, continued to rise.
Copper and most other London base metals failed to achieve the June opening. Commentary said BHP Billiton’s copper strike in Chile has lasted five days, but supply-side issues are no match for demand concerns. Copper premiums at Yangshan fell to a record low, indicating weak import demand from China, the largest consumer of copper.
In Europe, European stocks rallied led by the commodity-related mining and oil and gas sectors, with the pan-European stock index and the German stock index, which was also supported by rising auto stocks, both hitting record highs. Along with the rise in European stocks, European bond prices retreated and yields rebounded. Among emerging markets, the Turkish lira plunged to a record low intraday after Turkish President Recep Tayyip Erdogan said he wanted to cut interest rates this summer.
Dow hits three-week high in four straight days Five major tech stocks fall Energy sector rises nearly 4% to lead S&P Small-cap and mid-cap stocks lead broader market
The three major U.S. stock indexes opened collectively higher and all set new daily highs early in the session before retreating. The Nasdaq Composite Index hit a new intraday high at the beginning of the session since May 3, up more than 0.6% during the day, and turned lower less than 50 minutes after the opening bell. S&P 500 index rose more than 0.7% at the beginning of the session, two consecutive trading days since May 10 intraday high, which is expected to be the second consecutive trading day to record the second highest closing history, but the early morning short term turned down, and again turned down in the afternoon session. Dow Jones Industrial Average rose above 34,800 points at the beginning of the session, three consecutive trading days to hit a new intraday high since May 10, up nearly 320 points during the day, up less than 100 points at the end of the morning session, further retreat in the afternoon session, up less than 14 points at one point.
The final three major indices only four consecutive days of gains in the Dow closed up, the S&P ended three consecutive days of gains. The S&P closed down 0.05% at 4202.04 points, down last Friday only second to the May 7 closing level set by the second-highest closing in history. The Nasdaq closed down 0.09% at 13,736.48 points, down from the closing high set on Friday since May 7. The Dow rose for the fourth consecutive day, closing up 45.86 points, or 0.13%, at 34,575.31, a new closing high for the third consecutive day since May 10.
Small-cap stocks opened higher overall, with value stocks dominating the small-cap index Russell 2000 closing up 1.14%, beating the broader market for the third of the last four trading days. The tech-heavy Nasdaq 100 closed down 0.23%, underperforming the broader market.
Of the S&P 500’s 11 major sectors, five closed lower and six closed higher on Tuesday. Declining sectors, down more than 1% in health care led the decline, utilities fell more than 0.6%, information technology fell more than 0.4%, the smallest decline was down nearly 0.2% in non-essential consumer goods. Up in the sector, up nearly 4% of the energy is leading, real estate and materials rose more than 1%, the bottom of the rise is up 0.2% of telecommunications services.
Most of the leading technology stocks fell, Tesla fell more than 0.2%; FAANMG six major technology stocks, only up about 1% of Google’s parent company Alphabet and rose more than 0.1% of Facebook closed up, Microsoft fell more than 0.9%, Nifty fell more than 0.7%, Apple fell nearly 0.3%, Amazon fell more than 0.1%.
Small-cap stocks that rose sharply in January this year due to retail investors holding short: AMC Theatres closed up nearly 23%, BlackBerry (BB) rose nearly 15%, GameStop (GME) rose more than 12%, Express rose more than 11%, Goss Electronics (KOSS) rose more than 4%.
Energy and banking stocks rose in general, the largest U.S. oil ETF USO rose 2%; Marathon Oil rose over 13%, Calon Oil rose 12%, Exxon Mobil rose over 3%, the only energy component of the Dow Chevron rose over 2%. Five major U.S. banks, Goldman Sachs rose more than 2%, Citi, Morgan Stanley, Bank of America, JPMorgan Chase rose more than 1%.
Most popular Chinese stocks rose and outperformed the broader market, with Chinese ETF KWEB up about 4% and CQQQ up more than 3%. Pindo closed up more than 11%, Azera rose more than 9%, Xiaopeng rose more than 7%, Tiger Securities rose more than 6%, Jingdong rose nearly 6%, and Fudao Securities rose more than 5%.
In Europe, just ended a two-day streak of pan-European stock index rebounded, the European Stoxx 600 index the third of the last four trading days to close at a record high. Among the sectors, up more than 2.8% mining stocks in the sector where the basic resources led, oil and gas and automotive and parts also rose more than 2%. Individual stocks, agreed to pay Nokia patent royalties German auto giant Daimler rose 2.6%, BMW also rose more than 2%, supporting the German stocks in Europe’s top stock index gains.
U.S. dollar index nears more than April trough, offshore yuan falls off two-year highs Bitcoin ethereum once fell nearly 6% and 8% during the day
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, continued its downward movement after European stocks turned lower midday on Tuesday, with U.S. stocks once falling below 89.67 in early trading, approaching the intraday trough set last Tuesday, May 25, since January 7, down nearly 0.2% during the day, with U.S. stocks turning higher at midday.
By Tuesday’s U.S. stock market close, the dollar index was around 89.90, up a modest 0.08% intraday; the Bloomberg Dollar Spot Index rose 0.1%, at its highest level since May 26 when U.S. stocks closed.
The offshore yuan (CNH) had been close to recovering the 6.36 handle in early Asian trading, approaching the intraday high set since May 23, 2018, which rose above 6.36 on Monday, before turning down in Asian midday, losing 6.37 and 6.38 after the Asian midday and European stock markets, respectively. At 5:59 p.m. Beijing time on the 2nd, the offshore yuan was at 6.3831 yuan against the dollar, down 103 points from Monday’s end of New York.
After the U.S. stock market, the Turkish lira refreshed its historical low against the dollar to below 8.82 after Turkish President Recep Tayyip Erdogan’s statement, with an overall intraday drop of nearly 3.0% and a wild letdown of more than 3,000 points in less than 40 minutes.
Bitcoin (BTC) surged to $38,000 in early Asian trading to refresh the four-day intraday high since Friday, and has since continued to fall, falling below $35,700 in the U.S. session to refresh the daily low, down more than $2,000 from the intraday high, a percentage drop of nearly 6%, and closing slightly below $36,000 in the U.S., down more than 2% in the last 24 hours.
Ether (ETH), the second largest cryptocurrency by market capitalization after Bitcoin, had risen above $2,700 in early Asian trading, also refreshing a four-day intraday high, before US stocks fell below $2,530 during the session to refresh the daily low, down nearly 8% from the intraday high, and US stocks closed below $2,600, down more than 3% in 24 hours.
CoinMarketCap data shows that most mainstream cryptocurrencies fell on Tuesday, with the 13th largest cryptocurrency by market capitalization, Bitcoin Cash (BCH), down more than 3% in the last 24 hours, the 14th largest cryptocurrency, Litecoin (LTC), down nearly 3%, the sixth largest cryptocurrency, Ripple (XRP), down nearly 0.9%, while the fourth and seventh largest cryptocurrencies, Cardano ( ADA) and Dogcoin (DOGE) rose more than 3%, while the fifth largest cryptocurrency, Coinancoin (BNB), rose more than 1%.
U.S. oil hits new high of more than two-and-a-half years, up nearly 4% in the session
International crude oil futures rose headlong after OPEC+ tapered production cuts as planned. Brent crude rose above $70 in the Asian session, breaking through the barrier intraday for the first time since May 2019, and has continued to rise since then, with U.S. stocks once rising above $71 to $71.34 in early trading, continuing to set a new two-year high, up more than 2.9 percent intraday. U.S. WTI crude oil approached $69 to $68.87 in early U.S. trading, hitting a new intraday high since October 2018, with a maximum intraday gain of more than 3.8%.
In the end, WTI July crude oil futures closed up 2.11% at $67.72/barrel, a new closing high for the main contract since October 22, 2018; Brent August crude oil futures closed up 1.3% at $70.25/barrel, a new closing high for the main contract since May 2019.
London-based copper ends three-day streak down more than one-week high but holds $10,000 Gold leaves nearly five-month high but holds $1,900
London base metals futures were partly lower this week, and on the first trading day of June. Copper and aluminum ended a three-day streak of gains and fell more than a week off their highs, but copper held the $10,000 barrier and closed above $10,000 for the third straight day. Tin ended a four-day streak and fell off a 10-year high, but remained above $30,000. And zinc and lead rallied, with zinc hitting a near three-year high for the second time in the last three trading days and lead hitting a two-week high. Lunnickel rose for four days in a row, hitting a three-month high for two consecutive sessions.
In precious metals, New York gold futures in Tuesday before the European stock market had risen above $ 1919 to refresh the high since early January, up more than 0.7% during the day, the U.S. stock market turned down after the opening, temporarily off nearly five months high, but the closing finally held the $ 1900 mark. COMEX August gold futures closed down 0.02% at $ 1905.00 per ounce, closing for two consecutive days at $ 1900 Above, gold futures on Friday for the fifth day in six days to hit a new closing high for the main contract since January 7.
New York silver futures rose for the third day in a row, closing up 0.31% to close above $28.10/oz, a new high since May 18. Platinum rose for two consecutive days. Palladium rose for three days in a row, closing up 1.17% at $2863.2/oz, a new high since May 20.
10-year U.S. bond yields hit a new high of more than a week, back on 1.60%
European Treasuries prices fell collectively on Tuesday, with British bond yields topping the rise. The British 10-year benchmark Treasury yield rose 3.1 basis points to 0.826% during the day; the German bond yield rose 0.8 basis points to -0.178% during the same period.
U.S. 10-year benchmark Treasury yields remained up throughout the day, the ISM manufacturing index was released, in the U.S. stocks in early trading had tested 1.64%, a new intraday high since May 20, after which with the S&P and the Nasdaq turned down, some fall, down to 1.62% below the lunchtime, to the U.S. stocks closed at about 1.61%, up 2 basis points during the day.