The COMPUTEX event is currently taking place in Taipei.
Today's market reflects cautious optimism ahead of critical economic indicators, including the U.S. inflation reading, tech stock resurgence led by Nvidia, and nuanced Federal Reserve commentary.
Traders are cautious ahead of Friday's release of the U.S. personal consumption expenditures price index, which measures inflation and is closely watched by the Federal Reserve. Economists anticipate a slowdown to 2.6% annual growth in May, marking a significant deceleration over the past three years.
Fed policymakers emphasize patience in their recent statements, signaling no rush to lower interest rates despite market expectations. The CME FedWatch tool indicates that markets are pricing in approximately two rate cuts this year, with a September cut likelihood at about 67%.
European markets are poised for a positive opening, bolstered by tech sector gains following Nvidia's impressive rebound of over 6%. This rally counters a recent three-session decline that saw Nvidia's market value shrink by about $430 billion.
Given a light economic calendar, market movements may be subdued as the quarter ends, with additional focus on developments surrounding the upcoming French elections and the euro's performance.
In Asia, tech stocks have shown resilience, with Taiwan's market rising by 0.24% and Japan's Nikkei climbing 1.45% to its highest level since early April. Despite these gains in the tech sector, broader market indices remain mixed.
The Japanese yen's stability just below 160 per dollar continues to be monitored closely, raising concerns about potential intervention by Japanese authorities. Earlier interventions in late April and May totaled ¥9.8 trillion to stabilize the yen.
Corporate attention centers on Deliveroo shares following reports of potential acquisition interest from U.S.-based meal delivery giant Doordash.
