📰 Chump Profit Morning Brief: Oil mixed as Traders Weigh Demand📉📈

Global Market Overview:

Asian shares were mostly subdued on Thursday as global central banks reiterated their commitment to fighting inflation, signalling the possibility of further rate hikes. The Chinese yuan and the Japanese yen struggled to recover from recent lows amid concerns about potential intervention by authorities. MSCI's broadest index of Asia-Pacific shares outside Japan was flat, while Chinese blue chips slid 0.3% and Hong Kong's Hang Seng index fell 0.7%. Japan's Nikkei, however, gained 1% and was on track for a strong monthly and quarterly performance.

US Market Recap:

In the US, stock markets showed mixed results, with the Nasdaq managing a small gain supported by tech stocks, including Apple, which reached a record high closing price. The Dow closed slightly lower. Micron Technology's stock rose 3% in after-hours trading after the company's third-quarter forecast exceeded expectations, driven by demand from the artificial intelligence sector. Apple's market value approached $3 trillion, with the stock rising 0.6% to close at $189.25.

Apple's Path to $3 Trillion:

Apple's stock has surged 46% this year, contributing to its journey toward a $3 trillion market capitalization. This growth follows the launch of the company's augmented-reality headset, signalling its bold move into new technology areas. Other tech giants, such as Nvidia, Tesla, Meta Platforms, and Microsoft, have also experienced substantial gains this year, fuelled by optimism about artificial intelligence and expectations of a potential end to the US Federal Reserve's interest rate hikes.

Central Bank Actions and Inflation Concerns:

At a European Central Bank forum, Federal Reserve Chair Jerome Powell indicated that the Fed is likely to raise rates further, with a possible hike in July. Powell noted that inflation is expected to persist above the Fed's 2% target until 2025. The market reaction to Powell's comments was relatively modest. Two-year Treasury yields closed at 4.722% but were little changed on Thursday. The US Personal Consumption Expenditures (PCE) index reading, scheduled for Friday, will be closely watched as the Fed's preferred measure of inflation.

Currency and Oil Market Update:

The US dollar remained relatively stable against major currencies, supported by Powell's hawkish comments and quarter-end rebalancing flows. The Canadian dollar weakened to a near two-week low against the greenback, influenced by broader gains in the US dollar and increased uncertainty about further interest rate hikes by the Bank of Canada. Oil prices were flat, with Brent crude futures falling slightly to $73.76 a barrel, while US West Texas Intermediate (WTI) crude futures slid to $69.35 a barrel. Concerns about economic growth and global fuel demand following potential interest rate hikes by central banks weighed on oil prices.

Key Economic Events Today:

- Eurozone economic confidence and consumer confidence data will be released.

- The US will publish GDP and initial jobless claims figures.

- Atlanta Fed President Rafael Bostic is scheduled to speak.

That's all for today's morning brief. Stay informed and make wise investment decisions.