Futures contracts indicated that European stock markets were poised for a weak opening, with futures for the Eurostoxx 50 index rising by 0.10%, futures for the German DAX index rising by 0.02%, and futures for the FTSE index rising by 0.07%.
The S&P 500 index began the first session of the second quarter quietly, influenced by concerns about the timing of interest rate cuts after stronger-than-expected manufacturing data pushed Treasury bond yields higher. The US benchmark index posted its largest quarterly percentage gain in five years. The yield on 10-year Treasury bonds fell to 4.309% on Tuesday, after touching a two-week high of 4.337% in the previous session.
The yield on two-year US Treasury bonds, which typically moves in line with interest rate expectations, fell by 2.5 basis points to 4.693% on Tuesday, not far from a two-week high of 4.726% touched in the previous session. Higher yields boosted the dollar broadly, with the euro and the British pound declining throughout the day.
Against a basket of currencies, the dollar rose to 105.05, edging closer to a four-and-a-half-month high of 105.07 touched on Monday after stronger-than-expected data for the manufacturing sector.
In commodities, US crude oil rose by 0.51% to $84.14 a barrel, while Brent crude reached $87.85 a barrel, up by 0.49% during the day, supported by signs of improved demand and escalating tensions in the Middle East. Spot gold rose by 0.3% to $2256.46 an ounce, after hitting an all-time high of $2265.49 on Monday.
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Shady Fouad is a technical analyst at LDN Company
Shady's strategic vision in the currency markets is reinforced by more than fifteen years of trading experience, which enables him to blend economic and technical analyzes with high efficiency, and find the best investment ideas for traders.
