Overnight Market Review (2022.6.2) Market expectations for aggressive interest rate hikes by the Federal Reserve increased on Wednesday, U.S. stocks retreated, U.S. dollar and U.S. bond yields climbed, and gold price gains were limited.
GLOBAL GOLD: Gold prices recovered from a two-week low on Wednesday as investors turned their attention to safe-haven gold amid concerns about rising inflation, mainly driven by higher fuel prices, but gains were capped by a stronger dollar and rising U.S. bond yields. Gold futures rose 0.02% to settle at $1,848.7 an ounce.
U.S. stock index futures edged higher in premarket trading Thursday after the U.S. ADP added jobs in May far less than market expectations, adding only 128,000 jobs, the lowest level since February 2020, while the market had expected an increase of 300,000. Meanwhile, the April data was also revised down to 202,000 from 247,000.
Analysts pointed out that although there are many vacancies, the number of job seekers is limited, making it difficult for companies to recruit employees. Yesterday, the number of JOLT vacancies announced in the United States reached 11.4 million, still near a record high. However, weekly jobless claims were slightly better than expected, coming in at 200,000 versus market expectations of 210,000.
This week, investors will also need to focus on Friday’s official nonfarm payrolls report. In terms of stocks, after-hours investors also need to pay attention to the earnings reports of Crowdstrike and Lululemon.
Trading strategy deployment: it is recommended to go short at high levels
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