Oil prices decreased for the 5th consecutive session. AI companies support the NASDAQ index

Minneapolis Fed President Kashkari’s comments were hawkish. They supported the dollar when he said the Fed will likely hold interest rates for an “extended period” until new economic data convinces policymakers that inflation is declining. Markets estimate the odds of a 25 bps rate cut at 1% at the June 11-12 FOMC meeting, 15% at the next meeting on July 30-31, and 51% at the next September 17-18 meeting.

European equity markets opened lower on Tuesday, following a global decline among global peers as disappointing US industrial production data weighed on market sentiment. Investors are also cautiously awaiting the European Central Bank’s decision this week, which is expected to cut interest rates for the first time since 2019. Meanwhile, markets will see if last week’s Eurozone inflation data will influence the ECB’s decision.

On Monday, silver (XAGUSD) gained support on strengthening manufacturing activity in China after the May Caixin PMI rose by 0.3 to 51.7, the highest reading in 23 months and a positive for industrial metals demand.

WTI crude oil prices fell below $74 a barrel on Tuesday, dropping for the fifth consecutive session to the lowest level in four months amid concerns that global supply could increase later this year. OPEC+ agreed on Sunday to extend most supply cuts through 2025 but opened the door for voluntary cuts by eight member countries to be phased out starting in October. More than 500,000 barrels a day are expected to return to the market by December, and 1.8 million barrels a day by June 2025.

Asian markets were predominantly up yesterday. Japan’s Nikkei 225 (JP225) gained 1.13% over yesterday, China’s FTSE China A50 (CHA50) climbed 0.55%, Hong Kong’s Hang Seng (HK50) rose by 1.79%, and Australia’s ASX 200 (AU200) was positive 0.77%.

On Tuesday, the S&P/ASX 200 Index (AU200) fell 0.05% to below 7,760, interrupting two days of gains. This was helped by losses in mining and energy stocks amid lower commodity prices. Investors are also awaiting Australian GDP data this week to gauge the current state of the economy and potential implications for domestic monetary policy.